In 2023, commercial banks in Uzbekistan issued mortgage loans totalling UZS 16.85 trillion ($1.4bn). This represents a 17% increase from the previous year, according to the international consulting company Commonwealth Partnership Uzbekistan (CMWP).
Dollar-denominated loans on rise
The country has seen a significant increase in mortgage loans issued in dollars. In 2023, the figure reached $1.4bn, marking a 10.6% increase y/y.
Primary vs secondary market loans
About 60% of mortgage loans last year originated in the primary market, while the remaining 40% came from secondary housing. This ratio witnessed a shift over the year, with the popularity of new flats and houses falling by 15%.
Mortgage contracts in housing market
Of the total number of transactions in the primary and secondary markets, the share of mortgage contracts in 2022 was 28%.
The Asian Development Bank (ADB) has been a key international financial institution supporting the Government of Uzbekistan’s housing programs. These projects have stimulated mortgage lending and supported the development of the domestic housing construction industry. In 2021, the Mortgage Refinancing Company of Uzbekistan (UzMRC) contributed 20% or UZS 1.96 trillion ($158.6mn) of the total UZS 9.8 trillion ($792.8mn) mortgage lending products in the Uzbekistan banking sector.
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