The average rental rate for 100 sq.m. on the first floor is $40 per sq.m. per month.
The consulting company Commonwealth Partnership Uzbekistan (CMWP) has presented an overview of Tashkent's retail real estate for 2024. Spot has reviewed the research (a copy is available with the editorial office).
Last year, Tashkent's retail real estate market expanded significantly. The total area of format shopping centers reached 478.5 thousand sq.m., which is 73% more than in 2023 (276.5 thousand sq.m.).
The largest opening of 2024 was Tashkent City Mall, which added 100 thousand sq.m. of leasable space.
The average rental rate in large shopping centers has practically not changed in 2024. On average, 100 sq.m. on the 1st floor are leased for $40 per sq.m. per month, but depending on the location, rates vary in the range of $15-70 per sq.m.
In the report, rent is calculated for 100 sq.m. on the first floor, as such stores are the most in-demand and form the basis of retail space.
The difference in cost is explained by the quality of the shopping center itself, its location in the city, as well as the location of the store within the building – areas with high foot traffic are valued higher.
The vacancy rate remains high but is gradually decreasing as new shopping centers are filled. At the same time, CMWP experts do not expect rental rates to increase in the coming year due to increased supply.
International brands continue to actively enter the Uzbek market, occupying a significant portion of retail space. According to the Uzbekistan Franchising Association, there are 460 franchise brands and 13,400 franchise outlets operating in the country. In 2024, Novikov Group, Sun Group, Papa John’s, Domino’s Pizza, Costa Coffee, KFC, and others entered the market, increasing competition among tenants and creating demand for quality retail spaces.
CMWP experts specifically noted that the retail market in Tashkent continues to change. Shopping center owners are updating old facilities to make them more modern and convenient.
Currently, shopping centers built between 2010 and 2016 are undergoing modernization in the city to meet the modern requirements of tenants and visitors.
Increasing attention is also being paid to economical retail formats, such as eco-markets and fresh markets, where consumers can find fresh products directly from producers.
What's Next
In 2025, new shopping centers will open in Tashkent, significantly increasing the available leasable space. One of the largest facilities will be Alfraganus Shopping Center with a leasable area of 77 thousand sq.m.
An additional 89.2 thousand sq.m. of retail space is also expected to be commissioned in three major complexes:
- Piramit Shopping Center – 28.5 thousand sq.m.;
- Park In Mall – 24.7 thousand sq.m.;
- High Town Mall – 36 thousand sq.m.
CMWP experts expect the total volume of shopping centers in Tashkent to reach 567.7 thousand sq.m., but there remain risks of postponing some facilities to 2026.
In the coming years, the volume of retail space in Tashkent may increase due to the renovation of traditional markets. The reconstruction and redevelopment of the "Askiya" and "Yunusabadsky" bazaars are planned, as well as the development of gastronomic and retail clusters.
Demand for quality retail space will remain, but rental rates will stay stable due to high competition among owners.
Overall, Tashkent's retail real estate market is showing active growth, but the high volume of new supply and slowing absorption rates create moderate expectations regarding rental rate increases in 2025.
Earlier, Spot wrote that office rental rates in Tashkent might fall due to high market competition.
Source: Spot.uz
Photo: Afisha.uz
