Growth of Uzbekistan’s Real Estate Market and Its Surprising Factors

Introduction

Uzbekistan’s real estate market has been in the news for its 13% growth, with 25,000 transactions in August, down 4.6% from the previous month, but still showing healthy year over year growth. In the capital city of Tashkent, home prices rose 0.2% during the month while falling 2.3% on a year-over-year basis. These numbers are important for understanding economic policy and market trends in Uzbekistan. This article will delve into the factors behind this growth and future market prospects.

Real Estate Market Trends and Background

The growth of Uzbekistan’s real estate market is the result of several factors. First, the country’s population of approximately 33 million people is in line with the global trend toward urbanization. The rise in the average annual income of the population will also contribute to the market’s expansion.

• Number of real estate transactions: 25,000 (August)
• Monthly price change in the capital city of Tashkent: 0.2
• Year-over-year real estate market growth: 13%.

What these figures indicate is that the real estate market has been experiencing constant and stable growth. However, the annual price decline in Tashkent can also be a factor that creates new investment opportunities.

• Economic growth rate: 7% ( projected for 2023)
• Metropolitan population growth rate: 1.5% yr

Economic Policies and Market Growth Drivers

Policy support is behind the growth of Uzbekistan’s real estate market. The government has introduced preferential policies for foreign investment, opening the door for international business. This has led to a steady increase in foreign investment.

• Total amount of foreign investment attracted: approximately US$2 billion
• Increase in the number of M&A transactions: 15% increase over the previous year

For example, construction of a subway extension and a large-scale shopping mall is underway as major projects for 2023. This is expected to further boost demand for real estate in urban areas.

In addition, Uzbekistan is strengthening its position as an access point to the Central Asian economic zone, which is an important factor for market growth, and increased M&A activity is also driving the creation of more investment opportunities.

All of these factors point to further growth in Uzbekistan’s real estate market in the future. For investors, now is the perfect time to consider entering the market.

Key Factors for Investing in Uzbekistan

The growth of Uzbekistan’s real estate market is supported by economic stability and government policies.

This section takes a closer look at some of the key factors affecting investment.

Uzbekistan’s economy continues to grow due to its diverse industrial base and abundant natural resources. The country is particularly well known for its natural gas production, and the energy sector is the backbone of the economy. The government actively encourages foreign investment and offers a number of incentives.

• Economic Reforms: The government is promoting deregulation and privatization in order to transition to a market economy.
• Infrastructure: The international airport and major roads are being developed to improve accessibility.
• Improved investment environment: Foreign companies are finding it easier to enter the market through reduced corporate taxes and simplified use of facilities.

Risk 4] Risk of political instability

Although the country is politically and economically stable, risks may arise due to relations with neighboring countries.

Countermeasures:

• Always be aware of the latest political situation and gather information from reliable sources
• Diversify risks by utilizing multinational support and regional cooperation.

Professional advice:

It is important to work with local experts and business consultants to manage risks. Building a reliable network is key to success.

Uzbekistan Future Outlook and Investment Strategy

Many sectors of the Uzbek market are expected to grow in the future, especially renewable energy andtourism. The government is encouraging investment in renewable energy in order to achieve sustainable development. In tourism, new tourist routes are being developed and infrastructure is being improved.

Strategic Investment Checklist:

• Entering renewable energy projects
• Development and marketing of tourist facilities
• Strategic alliances with local partners
• Developing an understanding of local laws and regulations

By using this wide variety of strategies, you can expect stable earnings and sustainable growth.

In Summary: Why You Should Act Now

2024 is the perfect time to invest in Uzbekistan M&A. The government’s preferential policy for foreign investment is scheduled to continue until 2027, allowing early entry to maximize benefits. The current 12% corporate tax rate is scheduled to increase gradually starting in 2026, making now the most favorable time to invest.

Why you should start now:

• Secure quality local partners
• Benefit from the most favorable tax regime
• Gain first-market advantage
• Build good relationships with governments

Now is your chance to realize annual returns of 30-35%.

Next Steps:

We strongly recommend that you begin consulting with an expert now to begin developing a concrete investment plan.