Why the Future of Real Estate Lies with Management Companies
The real estate market in Uzbekistan is developing rapidly. New residential complexes and business centers are appearing in the capital one after another. However, behind the attractive facades and impressive renderings lies a more complex question: who will manage these properties, and how? Simply building a high-rise is no longer enough; it needs to be brought to life, its concept maintained, and services provided that meet the expectations of residents and tenants.
Planned a Coffee Shop, Ended Up with a Tire Service Center
The most vulnerable point of any residential or multifunctional complex is its ground floor. Theoretically, this is where the tone for the entire concept should be set: creating a comfortable environment, shaping the style, and upholding the developer's promises. In practice, however, things often turn out differently.
In Uzbekistan, the cost of capital is high, and developers strive to recoup their investments as quickly as possible. This often means selling off the entire building in parts. As a result, a single complex can have hundreds of owners, each with their own vision. One person might have planned to open a grocery store but changed their mind and opened a restaurant. Another might have bought a space "for future use" and left it vacant. This leads to chaos that undermines the original concept.
Meanwhile, global experience shows the opposite: if a developer wants to maintain a unified style and the promised concept, they should not sell off the ground floors. The commercial spaces should remain under their management or under the control of an institutional investor committed to preserving the strategy. In Russia and Kazakhstan, this is often achieved through real estate funds, where pools of commercial spaces are consolidated and professionally managed. While such a mechanism is not yet legally possible in Uzbekistan, the market will eventually move in this direction.
How Much Does a Security Guard Cost for 4 Million?
Even when the concept is well-executed, developers and management companies face another challenge: operational costs. Modern engineering systems are expensive to maintain, requiring specialized technicians, sometimes even those brought in from abroad.
"Why is your security guard earning four million? Hire one for two" – such questions directed at management companies are common. People compare costs to what they are accustomed to, without considering that the building's class demands a different level of service. If a project is marketed as Class A, it must meet that standard in every aspect, from climate control systems to security.
This is precisely where the key mission of a management company comes into play: it works for the residents. Its task is not only to ensure cleanliness or security but also to protect the interests of the building's users, providing comfort and safety that directly impact the property's value and profitability.
All for One and One for All
Payment discipline remains one of the most pressing issues. A modern building requires regular and significant expenses, and non-payment by individual owners can threaten stability. The legislation has addressed this problem: the tariff for the upcoming year can be set considering outstanding dues. In other words, the arrears of individual residents are distributed among the rest when planning the budget.
This solution is not without its drawbacks – conscientious owners have to bear an additional burden. However, the mechanism also has a positive effect: it fosters a culture of collective responsibility. Neighbors begin to monitor the situation themselves, demanding that each other fulfill their obligations. In this sense, the law creates conditions for self-regulation within communities.
Walkable Access or Overkill?
Commercial spaces on the ground floors are an important source of income for developers and owners. However, this is precisely where it's easiest to go too far. In their eagerness to earn more, developers sometimes saturate a complex with unnecessary shops or offices, failing to consider actual needs.
A modern approach involves analysis: how many families will live there, what is their size and income level, and what amenities are available within walking distance. This is where geomarketing is used to forecast the district's needs, and only then is the pool of commercial spaces formed. Otherwise, there's a risk of ending up with vacant spaces and disappointed residents.
From Architecture to Profitability
Developers love to talk about the beauty of facades and the number of square meters. But the reality is that architecture is not just about form; it's also about economics. Every decision made during the design phase directly impacts how much the building will generate in the future. Mistakes here are costly: short-sighted planning limits rental potential, creates vacant spaces, and complicates operations.
A well-thought-out structure, flexible spaces, and versatile engineering systems allow a building to remain in demand for decades. This means thinking not only about how to sell a square meter here and now but also about how to ensure a stable cash flow for decades to come.
Who's Who in Management
For a building to not just stand but generate income and retain its value for decades, it's crucial to understand that real estate management is multi-layered.
Asset management is the investor level. Their task is to view the property as an asset and increase its capitalization. They don't count light bulbs and tiles but the building's overall value: how its price will grow, how much resale will yield, and how profitability will be reflected in reports. An asset manager looks at real estate through the eyes of funds and major players: "The building should appreciate, not age."
Property management focuses on rental income streams. Stability is key here: ensuring spaces are occupied, tenants are satisfied, leases are signed, and payments are received on time. This involves working with brands, retail chains, restaurants, and offices. If a property manager is successful, the property transforms into a stable business, not a lottery with vacant units.
Facility management is about operations. This is the most "ground-level" aspect: engineers, security, cleaning, parking access, office temperature, and water from the tap. Facility managers are the first people remembered when the elevator or air conditioning suddenly stops working. Their performance directly influences whether a tenant stays in the building or seeks a place with "better service."
All three levels exist simultaneously and are interconnected. If facility management falters, property management cannot retain tenants. If property management struggles, asset management cannot fulfill its primary goal – increasing capitalization.
The interests of these parties do not always align. For an asset manager, increasing capitalization might be more important than the immediate comfort of residents. For a property manager, the priority is collecting rent, even if the tenant is dissatisfied with the service. Facility management, on the other hand, is forced to side with users, explaining to investors and developers that without satisfied residents, the building quickly loses both tenants and its capitalization.
At the intersection of these contradictions lies the true work of a management company – finding a balance between profit and comfort, short-term figures and the long-term value of the property.
One Owner, One Vote
In this regard, Uzbekistan is ahead of its neighbors and even Russia. Here, decisions in buildings with multiple owners are made not by the number of square meters but by the principle of "one owner, one vote."
This fundamentally shifts the balance of power. Even if a developer owns half the building, they remain just one owner among others and cannot dictate terms unilaterally. Decisions are reached through discussion and compromise, not through the dominance of the largest player.
This system may seem more difficult and conflict-prone, but in reality, it ensures fairness and protects the interests of all participants. This approach demonstrates maturity: Uzbekistan is setting an example of more equitable management than many markets where owners of large property stakes effectively dominate all others.
Development of the Future
The modern market dictates a simple truth: simply building a high-rise is no longer enough. It is necessary to create an environment, plan services, and project the building's life for decades to come.
To achieve this, developers engage retail consultants, geomarketers, and property management specialists. They help calculate how many and what kind of commercial spaces are truly needed, where demand will be, and what format will ensure sustainable profitability.
These decisions are not about a "trendy concept." They are investments in resident and tenant loyalty, in the developer's image, and in long-term financial stability. This is how a new culture of development is being formed in Tashkent: moving from towers built for square meters to vibrant complexes where architecture becomes a tool for economics and quality of life.
