What is happening in the office real estate market in Tashkent

The consulting company Commonwealth Partnership analyzed the office real estate market in Tashkent during the second quarter.

In their report, experts note that the planned delivery of office properties scheduled for 2023 has been postponed to a later date. The delays are attributed to more complicated procedures for commissioning buildings and poor planning of construction completion timelines.

As tenant demands for higher-quality offices grow, supply in the market is also expected to increase, while lower-quality projects will undergo redevelopment to maintain interest in the properties.

The dynamics of rental rates for Class B and B+ offices stabilized at a growth rate of 1%, reaching $21.8 per square meter. Due to the increased supply of Class A and A+ offices, Commonwealth Partnership analysts do not predict any further rate increases by the end of this year.

Meanwhile, rental rates for Class A and A+ offices rose by 4.3% in the second quarter, reaching $34.6 per square meter. Over the next three months, an increase in the number of lease agreements in this segment is anticipated.

However, the current rental rates for Class A and A+ properties are not indicative, as only the Trilliant business center has been delivered so far. Therefore, a reversal in rental rate dynamics with potential declines is possible in the next quarter.

In the past quarter, there was increased demand for move-in-ready spaces, leading to reduced vacancy in this market segment. The overall vacancy rate in business centers across all classes stands at 6.7%. Nevertheless, with a large number of new properties expected to be delivered in the next six months, the market could shift from being landlord-driven to tenant-driven.

The vacancy rate for Class B and B+ office spaces was 3.18%, while for Class A and A+ spaces, it stood at 17.41%. A decrease in vacancy rates in the Class A and A+ segment is expected to begin only in the middle of next year.

Source: Spot.uz
Photo: Ilya Semendeev / Spot