"The growth in real estate prices occurred in Tashkent in 1996-1997, when a comfortable apartment in the center of Tashkent cost up to $ 30,000," says a private broker named Rustam, who has been working in the real estate market for more than 10 years.
But in 1999, real estate prices plummeted. According to private brokers, this was due to the tightening of the passport regime and difficulties with Tashkent registration after the explosions in February 1999. In addition, this was affected by the conversion restrictions, when the majority of foreigners, who also bought apartments before, left the country. However, such a rapid rise in prices, which happened in early 2006, was not yet in Tashkent. In the capital of Uzbekistan, real estate prices by Tashkent standards have become fabulous. Prices grew at a fantastic pace and, according to SKS Consulting, one of the leading consulting firms in Uzbekistan, by the summer of 2006 real estate prices had almost doubled. The rapid rise in prices caused a stir, after which many people began to buy real estate in order to resell it. The “black” real estate market has revived, and many brokers have done a good business on this wave.
A specialist from the Tashkent State Property Committee, who did not wish to give his name, cited several reasons why property prices rose sharply. “First of all, the so-called“ bank apartments ”, which have an improved layout, are not being built now, there is a shortage of them. Secondly, the information that the dollar will fall, leaked to the people, and many decided that it was better to invest this money in real estate. Thirdly, housing rental has become a very profitable business. Many people prefer to invest in real estate, rent it out, because it brings a good income. ”
A similar opinion is with the director of SKS Consulting, Murad Abdukhakimov. He believes that the main factor behind the rise in prices is the sharp decline in metropolitan real estate, which is in demand, which occurs as a result of the cessation of outflow of the population from the capital of Uzbekistan in 2005-2006, and the constant influx of people from the regions. “To date, the primary housing market in Tashkent has been almost exhausted, since the pace of housing construction has been extremely low over the past five years,” said Abdukhakimov. He also believes that the growth of prices was influenced by the forecasts of the real estate market participants about the imminent entry of “major players” from Russia, Kazakhstan and even Australia into the market. According to SKS Consulting, the real estate market participants are 16% of non-residents of Uzbekistan, and according to their forecasts, this figure may increase. In addition, according to other data, since many residents of non-Uzbek nationality had previously left Uzbekistan, housing prices were Nazi and new housing was not built - it was unprofitable. At the same time, the government and the city administration distributed and allocated a lot of land around the capital for the construction of private houses. Now these sites have ceased to distribute - this time. Then the flow of departures decreased, and the number of arrivals from the regions increased - these are two. People go to Russia and Kazakhstan to earn money, and then they invest this money in real estate - these are three. Investing extra funds other than housing in Uzbekistan is simply nowhere to be done - these are four. That is, it is an investment. And since last year, the country has still introduced a mortgage and most of the money distributed to it to the public has also been invested in the purchase of housing.
The broker, who did not wish to give his name, is also confident that prices have increased as a result of the massive buying up of Uzbek real estate by investors from Russia and Kazakhstan. “Relations between Russia and Uzbekistan have improved. Our presidents signed a number of documents and now it’s much easier for Russian businessmen to enter our market, ”he says. The realtor of one of the capital's real estate agencies, Anwar, also claims that the cause of all is the influx of foreign capital. “Real estate prices in Central Asia are very cheap, moreover, there are many prospects for business development in our region,” he comments. The second reason for the increase in prices - the so-called "game of brokers," when the brokers themselves artificially raise real estate prices, adds Anwar. The third reason, according to Anvar, is inflation. “Every day everything is going up. Real estate is no exception, ”he says.
In the “black” real estate market, which is located in the center of the city, many brokers say that by the end of 2005, rumors about the arrival of 1000 specialists from Moscow had spread, which invited the plant for the production of TAPOICH aircraft. “When we learned that Muscovites were coming soon, we began to raise real estate prices,” says one of the brokers. Other brokers believe that prices have begun to rise in price due to the influx of people from other regions of Uzbekistan. “The provinces come to Tashkent with their whole families. They hope to find a more decent life here than in their villages, they want to find work here, and of course they need housing. There are already more than a million visitors here. Demand exceeds supply, real estate prices rise in price accordingly, ”says a broker named Anora. In the Republican Real Estate Exchange, they refused to comment on the price increase situation.
So, what are the prices for real estate in Tashkent? A study conducted by consulting firm SKS Consulting shows that an average studio apartment in Tashkent today costs about $ 7,800, a two-room apartment - $ 12,417, a three-room apartment - $ 18,137, a four-room apartment - $ 21,307. According to unofficial data from brokers, the price for a one-room apartment in Tashkent today makes $ 10 000, $ 20 000 on two-room and $ 30 000 on three-room. But these are average indicators. According to the private broker Rustam, he recently sold an apartment in the center of Tashkent for $ 500,000. “It was an apartment in an elite area in the very center of the city. Apartments of this type are the most expensive in Tashkent, ”he explains. According to him, a square meter in such a house costs from $ 800 to $ 1000. “Such apartments are considered the most elite, living in them is very prestigious and not everyone can afford it,” says the realtor. Such apartments really exist in Tashkent, although they are few and their cost ranges from 100 to 500 thousand dollars.
But other factors can affect property prices. According to the director of SKS Consulting, Murad Abdukhakimov, there are considerations of prestige, features of planning, transport and other infrastructure. “The cost of three-room apartments in the Yakkasaray, Khamza, Yunusabad districts of Tashkent is higher than the cost of 4-room apartments in the city. Closer to the average prices of apartments in Mirabad district. Cheaper housing in Sabir-Rahimov district and Chilanzar. The minimum cost of a three-room apartment, almost half the average, is observed in the Sergeli microdistrict, as well as on the Panel and Karakamysh massif, ”he said in an interview with Fergana.ru news agency.
With regard to price forecasts, many experts express the view that prices will only grow, but not so fast. According to one of them, the season of rising prices is at the end of autumn, when dehkans help out money from the harvest, as well as the beginning of spring. “And in the summer, people are leaving to rest. The price hike that was observed stabilized by the summer, but by the beginning of autumn it had become active again, because students, workers who need housing again came to the capital, ”he says. “While we are in good relations with Russia, there will be a large flow of investments that will stimulate further growth in real estate prices,” said an independent expert on international relations who asked not to be named. According to another observer, prices continue to grow steadily - at $ 600-1,000 per apartment per month.
Today, real estate in Tashkent has become one of the most profitable industries, which brings a lot of income. Buying an apartment for one price, people have a chance to resell it much more expensive, because prices are rising at a fantastic pace. In Uzbekistan, the average wage is just under $ 20 (officially around 50), and foreigners cannot own their own property. Nevertheless, all respondents find it difficult to answer how long high prices for apartments will last. However, they have no doubt that after the ban on the capital registration for residents of the rest of Uzbekistan is lifted, a huge number of people from the regions will rush to Tashkent and housing prices will skyrocket.