The demand for real estate in Uzbekistan has surged again after a decline at the beginning of the year, as per the country's Central Bank.
During 2Q, the number of contracts for buying and selling real estate reached 90,800, the highest since the start of 2021.
The number of transactions increased by 21% compared to the previous quarter and 10.8% between April and June 2022.
By the end of June, housing prices had increased by 27.2% in the secondary market and 21% in the primary market.
Annual growth by the end of the first quarter was 24% and 18.2%, respectively.
Rents had also increased by 18.8% in the past year, but rented accommodation decreased by 6% due to the exhaustion of external shocks from the beginning of the year.
The Central Bank believes that the growing volume of mortgage lending is one of the factors stimulating the growth of demand.
Uzbekistan's citizens took out UZS 7 trillion in housing loans in the first half of the year, a 6.7% increase from last year.
Approximately 60% of the mortgages allocated since the beginning of the year have been issued to purchase housing in new buildings.
The construction growth is evidenced by a 13% increase in cement production in five months, even after the collapse in January.
Despite the construction of new real estate, its value continues to increase. The Central Bank considers this to be due to the combination of investment demand of the population with limited alternative savings instruments.
About a third of real estate transactions in Uzbekistan are recorded in Tashkent. In June, the annual rise in prices of capital square meters reached 22.7%, primarily due to the 19.8% rise in land prices.
The highest rates of home price rise were observed in the suburbs of Bektemir, Sergely, Uchtepa, and Almazar districts. Experts noted their recent accelerated infrastructural development.
In the rental segment, Mirabad district showed the highest growth (22.9%), followed by Chilanzar (21.9%) and Yunusabad (21.4%). Prices rose the least (5.2%) in Bektemir district.
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