Denis Sokolov, Partner and General Director of Commonwealth Partnership Uzbekistan (CMWP) FRICS*, shared insights into promising entry points in the Uzbek real estate market for foreign investors, including residential construction and warehouses, in an interview with Kursiv Kazakhstan.
For instance, South Korean investors in Uzbekistan are channeling funds into office and hotel development, while Kazakhstani investors are focused on residential construction, Sokolov noted.
Companies from Russia and the Commonwealth of Independent States (CIS) demonstrate the highest activity in Uzbekistan. For these investors, securing foreign currency returns in a favorable jurisdiction is a priority.
According to Sokolov, they typically consider smaller deals valued up to $5 million. In contrast, investors from Asian countries are involved in large-scale, state-supported projects.
Western players are the least visible in the Uzbek real estate market.
Sokolov shared his opinion that the return on investment for development projects in Uzbekistan is estimated at no more than 14%, even with optimistic projections.
"In other countries, high returns on invested capital are achieved through leverage. In Uzbekistan, borrowed funds are very expensive, so one can only count on direct returns," the speaker stated.
*FRICS — Fellow of the Royal Institution of Chartered Surveyors — is one of the highest international qualification degrees in the real estate sector.
Source: Kursiv.uz
Photo: unkas / Depositphotos
