There is a shortage of apartments in Uzbekistan, which means they will remain expensive for a long time – expert

The real estate market in Uzbekistan is currently going through tough times – compared to last year, both sales have decreased and price growth has slowed down. However, this is only temporary because the demand for housing remains high, according to analyst Timurmalik Elmuradov.

“The Central Bank has calculated that over the past seven years, the number of new marriages in Uzbekistan has exceeded the number of new apartments by 3.5 times. Simply put, many new families are emerging, and they need housing, but there isn’t enough,” he noted.

According to data from the UN Economic Commission for Europe, from 2015 to 2025, Uzbekistan was expected to add 150,000 new apartments annually. However, in reality, from 2015 to 2023, the figure was much lower – around 91,200 per year. This has created a significant imbalance between population growth and housing availability.

Speaking of the population, as of July 1, Uzbekistan’s population stood at 37.1 million people, and the IMF predicts that by 2029, this figure will reach 41 million. Therefore, demand for apartments will continue to grow, and with it, so will prices. Sometimes this will happen rapidly, as seen in 2022-2023, and at other times more slowly, like in 2024.

Artificial shortage

Apartments are also becoming more expensive because they are often bought not for living but to “park” money, the expert believes.

“This isn’t great because it inflates a bubble – there are already too few apartments, and even fewer are being put up for sale. On the other hand, where else can people in Uzbekistan invest large sums of money? There aren’t many options. So it’s no surprise that real estate has become a popular way to save or make money. This trend is seen even in the mortgage sector,” he emphasized.

A simple fact – in 2017, the share of those who bought an apartment on credit two or more times was 3.7%. Seven years later, this figure grew to 6.5%. This is why, starting from May 1, mortgages funded by the state budget are only available to those who haven’t used them before. The government aims to reach more people who need a home for themselves rather than for resale.

“We’ll see how this plays out,” Timurmalik Elmuradov concluded.

The text has been translated by AI. For more accurate information, please refer to the Russian version of the article