The Center for Economic Research and Reform (CERR) regularly analyzes changes in demand in the real estate market in Uzbekistan.
CERR analysis showed a seasonal decrease in activity in the real estate market. At the beginning of January and mid-summer, the demand for housing traditionally decreases. By purchasing property during this time, buyers can save. At the same time, you need to know that fluctuations in demand in the market also depend on changes in mortgage rates and innovations in legislation. By spring, activity in the housing market usually recovers.
In January 2022, 17.7 thousand real estate contracts were concluded, which is 2.4% less compared to the same period in 2021. However, in relation to January 2020, the growth was 15%.
Experts believe that activity in the real estate market regularly decreases at the beginning of each year, which is due to the seasonal factor. In January, buyers during the New Year holidays and holidays usually do not search for real estate. By spring, activity in the housing market is recovering.
In terms of regions, the highest growth rates in January were observed in Kashkadarya (36.4%), Ferghana (16%), Surkhandarya (11.1%) regions.
A decrease in the number of transactions in the real estate market was recorded in Tashkent region (-17.6%), the Republic of Karakalpakstan (-14.4%), as well as in the capital (-6.7%).
The number of concluded contracts for the sale of real estate in Tashkent and Tashkent region
According to the CERR, average housing prices in the secondary market in January increased by 1.4% compared to the previous month (they did not change in December, in November the growth was 1.2%).
In terms of regions, the highest rates of growth in housing prices were observed in Ferghana (5.2%), Andijan (5.0%) and Navoi (4.5%) regions, and in Jizzakh (-4.2%), Surkhandarya (-3.1%), Namangan (-2.3%) and Syrdarya (-2.1%) regions recorded a decrease in housing prices.
Experts note that housing prices in Tashkent increased by 2.4%. The largest increase in housing prices was observed in Mirzo-Ulugbek (5.0%), Mirabad (4.5%), and Yashnabad (4.3%) districts. Prices decreased slightly in Uchtepa (-1.4%) and Almazar (0.7%) districts of the capital.
According to the Central Bank of the Republic of Uzbekistan, in 2021, the country’s commercial banks issued 59.6 thousand mortgage loans for almost 9.8 trillion soums. This figure is 700 billion soums more than in 2020.
As of 1 January 2022, the balance of mortgage loans amounted to 35.8 trillion soums. Of the allocated loans, the primary market accounted for 7.35 trillion soums, and the volume of the secondary market amounted to 2.44 trillion soums.
