Tashkent Property Values

by Nathan Hamm on 3/17/2005 · 9 comments

RFE/RL reports that Tashkent’s real estate market is losing its luster:

But the government’s restrictive — and often unpredictable — approach to foreign investment has kept people away.

That means major companies that once opened regional offices in the Uzbek capital might be inclined to move elsewhere. A number of Western companies have already packed up and left for Almaty, the commercial capital of neighboring Kazakhstan, or other cities outside Uzbekistan.

Asila Ergasheva, a real estate agent, focuses on the Tashkent market. She tells RFE/RL that the real estate and property business has been stagnant for too long.

“Supply is very big, but there are very few people who want to rent apartments,” Ergasheva said. “The same is true for office space. It’s easy to find an office location in the capital [Tashkent]. You’ll get a lot of offers of renovated office space in the city center, and buildings for hotels or factories. Prices are acceptable. Supply is huge.”

A key problem is that demand among foreigners to rent or purchase commercial and residential space has dried up considerably since the early days of post-Soviet independence.

Institutions like the International Monetary Fund and the European Bank for Reconstruction and Development say Uzbekistan now sees less foreign direct investment per head than any other country in the regional CIS bloc.

Apartments cost more in Bishkek.

The worst part of the situation is that there is no demand for all the supply and the peculiarities of the real estate market makes it hard for most Uzbeks to buy apartments. Thankfully, the government is doing something about it.

Ibrohim Hakimov is an associate professor at Tashkent State Economic University. He tells RFE/RL that the decision to develop the mortgage sector could positively affect the broader economy and the country’s social situation:

“The government’s decision on mortgages is very timely,” Hakimov said, “because giving loans to certain spheres of the economy usually leads to reviving the overall economic situation. Mortgage lending will have the same impact on the economy of Uzbekistan. It will serve as a stimulus. Because the population’s current demand for real estate is high, but purchasing power is not high enough to support that demand.”

Of course, mortgages will not come without problems further discussed in the article, but this is definitely a step in the right direction. (As well as more of that uneven progress — this time particularly speaking to the economic needs that Uzbeks tend to cite as their primary concerns.)

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– author of 2991 posts on 17_PersonNotFound.

Nathan is the founder and Principal Analyst for Registan, which he launched in 2003. He was a Peace Corps Volunteer in Uzbekistan 2000-2001 and received his MA in Central Asian Studies from the University of Washington in 2007. Since 2007, he has worked full-time as an analyst, consulting with private and government clients on Central Asian affairs, specializing in how socio-cultural and political factors shape risks and opportunities and how organizations can adjust their strategic and operational plans to account for these variables. More information on Registan's services can be found here, and Nathan can be contacted via Twitter or email.

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Laurence March 17, 2005 at 10:33 am

Nathan, once they open up the economy, real estate will rise. It is only a matter of time. But can foreigners now buy apartments in Tashkent legally? When I lived there, real estate seemed to be only for Uzbeks…

Nathan March 17, 2005 at 10:42 am

I don’t know if you can buy, but you can rent. And I think that’s why the apartments are just beyond the reach of so many — they have value as rental properties. One would expect the prices to come down to more appropriate levels, but my experiences with (and what others have told me…) about residential real estate market makes pretty clear that it makes no sense.

You’re right though. Open up that economy and Tashkent will boom. It’s got location, location, location. It’s the biggest market in the region. It just makes sense to have regional headquarters located there.

Hulegu March 17, 2005 at 5:52 pm

Hang about. All those companies that upped sticks to Almaty, won’t they be pretty peeved that they’ll have to shift to Astana? or is that not yet the case?

Nathan March 17, 2005 at 5:57 pm

I know that’s what the government would probably like, but I’m not sure they’re that dumb.

The German embassy is moving though. I wonder if the Astana office they have now will just get a new title and most of the staff will get to stay in Almaty.

Mike Murray March 28, 2005 at 12:11 am

Yes you can legally own property in Tashkent Uzbekistan. You can also sign over power of attorney to have someone do business for you.My fisrt appartment I purchased which is a 4 bedroom was obtained for $3500. It is now valued at $15000. With the Soum exchange rate at a all time high of around 1100 soums for one usa dollar there are some just excellent values. You can also purchase a two bedroom for around $5000 in a nice area /renovate some(cheap lobor) and rent for $90 to $100 a month. Not a bad return. I would guess real estate inflation to be around at least 15% per year easily.

Aftab Ali March 29, 2005 at 5:59 am

I am interested in purchase a real estate apartment at Tashkent and want to know about residence permit
or system to establish a new business.
Thanks a lot, looking forward for advice.

Aftab Ali

Ali Murtaza May 7, 2005 at 9:08 am


I am very much interested in purchsing an apartment or a house at Tashkent. Please advice how to proceed

Evgeni December 12, 2005 at 9:56 am

My name is Evgeni. I’m the owner of several apartments in Tashkent.
You can see its description and photos here http://www.apartment.sk.uz


muhammad sami shamsuddin December 14, 2005 at 5:28 pm

i need a home to buy and hopefully i get a residence visa so i can do business in tashkent.plz give me the advice . bye and hope to hear u soon.

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