Commonwealth Partnership Uzbekistan presented a new real estate market study
Approximately 80% of office buildings in Tashkent are designed and constructed with technical specifications that do not meet tenant demands. This conclusion was reached by analysts from the international consulting company Commonwealth Partnership Uzbekistan (CMWP). The report on this study is available to "Kursiv".
CMWP cited a lack of attention to building design, cost-cutting on structural and engineering work, developers' misunderstanding of tenant needs, and the use of foreign standards, many of which are unsuitable for local climatic conditions, as reasons for the mismatch between offices and target audience requirements.
Typically, office spaces are leased without finishing. The opposite situation is observed in only 5% of cases. This is influenced by both the owner's reluctance to incur additional costs and tenants' expectations that the renovation will be done according to their needs. Furthermore, the Tashkent market lacks specialists in space outfitting (Fit-Out services).
Regarding the cost of finishing, analysts estimate it to range from $650 to $1,200 per square meter on average. VAT is not included in this amount. This refers to the cost of work that does not include furniture and IT equipment installation.
CMWP claims that an office finishing costing $650 increases the rental rate by $11 per sq.m. Currently, the owner's readiness to furnish and decorate the premises is a way to lease it at a more favorable price.
Source: Kursiv
Photo: benzoix / freepik
