The residential real estate market in Tashkent is showing signs of recovery after a downturn last year. Foreign developers are entering the market, and developers are increasingly adopting a systematic approach to renting out commercial spaces on the ground floors of residential complexes. This strategy enhances the appeal of these complexes to buyers.
In the first half of 2025, residential projects totaling 932,000 square meters were announced in Tashkent, an 8% increase compared to the same period in 2024 (864,000 square meters). This data is presented in a report by the consulting company Commonwealth Partnership Uzbekistan (CMWP Uzbekistan).
The total number of announcements remained nearly unchanged, with 17 compared to 18 a year earlier. As before, "Comfort" class housing constitutes the largest share, with 10 projects covering 616,000 square meters, a 2% decrease from last year. A significant growth was observed in the business-class segment, with five projects totaling 232,000 square meters, more than tripling last year's figure. Two projects were announced in the premium segment, with a combined area of 77,000 square meters, a 52% decrease from the previous year.
According to the report, following a downturn in 2024, caused by a demand adjustment amid a sharp price increase, activity has begun to recover in the business and premium segments.
"The anticipation of a crisis at the beginning of last year is giving way to moderate optimism from developers. The Comfort and Economy class sectors have proven particularly resilient to changes, maintaining their activity levels despite the downturn in other sectors," the document states.
Experts believe that demand for premium properties is also recovering. Consequently, they forecast an increase in announcements within this segment in the second half of 2025.
As noted in a review by the Central Bank, the growth in sales is largely driven by flexible payment terms offered by developers and the expansion of mortgage lending. An additional factor is the increase in real incomes, which rose by 9.5% year-on-year over six months. This, coupled with moderate price increases, expands housing acquisition opportunities, according to the regulator.
The large-scale renovation program for dilapidated housing in Tashkent is becoming a significant driver of industry development, according to the CMWP report.
"For example, within the renovation program for the 'Sputnik' district, launched in 2024 in the Yangikhayot district, it is planned to demolish 409 outdated houses and construct 93 new 16-story residential buildings. The first phase of the project aims to commission 2,000 apartments," the company shares. In the future, the revitalized district is expected to provide the capital with over 13,000 new apartments.
CMWP estimates that due to the approved boundaries of Tashkent's master plan zones and the development of a renovation bill, an increase in renovation projects is expected in the second half of 2025.
In its report, the company also highlighted several trends in the capital's residential real estate market. Developers are increasingly opting out of selling commercial spaces on the ground floors to various owners. Instead, a unified management concept is being applied, preserving the architectural and functional integrity of the properties. This approach enhances the value of residential complexes as finished products and improves their perception among residents and potential buyers, according to analysts.
Furthermore, the market features its first project in the service apartment format. This model involves the owner entrusting their apartment to a management company, which handles rental, maintenance, and payment collection, providing the owner with passive income without personal involvement.
The report also specifically notes a rise in new developers entering the capital's market since late 2024. This includes both local and international companies that have announced projects in the business and premium segments.
Source: Gazeta.uz
Photo: Shokhrukh Khaydarov / Gazeta.
