According to the Center for Economic Research and Reforms (CERR), housing prices grew by 20% over the past ten months in Tashkent.
In October, the secondary housing market in the capital city of Uzbekistan grew by 4.6% compared to 1.7% in September. The average price for housing surged by 19.8% starting from the beginning of the year. Many experts believe the main reason for such growth is a large influx of foreigners. Between January to October, the local housing market showed 9.2% growth over the same period last year.
However, in terms of the entire country, the housing market showed light cooling in October, even though the number of housing purchases this month was 4.3% higher than in the same period last year.
Experts from CERR noted that high demand for rented housing probably was the most likely driver for that slight decline in October. For instance, while the number of housing purchases slightly dropped in Tashkent, the average rental price here has surged by 17% and reached $10.5 for one square meter of housing.
Aside from the influx of foreigners, the fast-growing popularity of mortgages is also driving the housing market in Uzbekistan. As of today, this sector accounts for about half of all debts accumulated by Uzbekistani people.
Earlier this year, the Asian Development Bank announced a $150 million loan to Uzbekistan. This money must be used as loans to help people to improve their living conditions.