Commonwealth Partnership consulting firm analyzed the Tashkent office real estate market in the second quarter.
In the report, experts note that the commissioning of office real estate planned for completion in 2023 is being postponed to a later date. The delay is attributed to more complex commissioning procedures and incorrect planning of construction completion timelines.
Simultaneously with the growing tenant demands for office quality, market supply will also increase, and low-quality projects will undergo redesign to maintain interest in the buildings.
The dynamics of rental rates for Class B and B+ offices have stabilized at a 1% growth level, reaching $21.8 per square meter. Due to the increased supply of Class A and A+ offices, Commonwealth Partnership analysts do not forecast a growth in rates by the end of the current year.
However, rental rates for Class A and A+ offices increased by 4.3% in the second quarter, reaching $34.6 per sq. m. An increase in the number of concluded contracts in this segment is expected in the next three months.
However, the current rate level for Class A and A+ properties is not indicative, as only the Trilliant business center has been commissioned so far. Therefore, a reverse dynamic with a drop in rental rates is possible in the next quarter.
In the past quarter, high demand was observed for premises with ready-made renovations, which led to a decrease in vacancy in this market sector. The overall vacancy in business centers across all classes is 6.7%. Nevertheless, with the commissioning of a large number of properties in the next six months, the landlord's market may shift to a tenant's market.
The vacancy rate for Class B and B+ office spaces was 3.18%, and for Class A and A+ it was 17.41%. A decrease in vacancy for Class A and A+ will only begin in the middle of next year.
Source: Spot.uz
Photo: Ilya Semendeev / Spot
