What is the Cost of Renting Retail Spaces on Tashkent Streets in 2024

Rental rates are expected to continue their upward trend, particularly in the city's central districts.

 

What is the cost of renting retail spaces on Tashkent streets in 2024?

The consulting company Commonwealth Partnership Uzbekistan (CMWP) has analyzed the state of street retail in Tashkent for the first half of 2024.

 

Street retail is a format where shops, cafes, and other commercial outlets are located on the ground floors of buildings with separate street entrances. This format is particularly popular in urban centers with high foot traffic, ensuring a steady flow of customers.

 

According to the study, the most sought-after and popular street retail locations in the capital are:

 

- Taras Shevchenko Street;

- Shota Rustaveli Street;

- Amir Temur Avenue;

- Tashkent City.

This year, new zones such as Shakhrizabz Street and Block C-1 have been added to the report, selected based on an electronic survey of city residents.

Street retail in Tashkent demonstrates stability with a slight growth.

Vacant commercial premises have remained stable, with a slight decrease of 0.2%. In Tashkent City, vacancy has decreased by 22% compared to last year, but still remains high at 46%.

Last year, the vacancy rate was up to 6% of all real estate, excluding Tashkent City. The average rental rate in the selected areas is $26.8 per sq. m. In 2023, the rate was $21.3 per sq. m.

 

Tashkent City

The Tashkent City street retail zone comprises 271 premises and is located within two residential complexes: Boulevard and Gardens Residence. It features numerous car dealerships and restaurants, as well as diverse retail corridors.

The average rental rate is $28.1 per sq. m per month, which is 3% higher compared to last year.

The vacancy rate remains high at 46%. Experts predict a slowdown in tenant absorption due to the opening of the Tashkent City Mall and a subsequent lack of foot traffic.

 

Amir Temur Avenue

Amir Temur Avenue, stretching from Abdulla Kadiri Street to the Small Ring Road, is known for its high transport accessibility due to the metro and major business centers. The primary demand for rentals comes from employees of nearby offices, students, and local residents.

The number of retail units on this avenue has increased from 139 to 158 premises. The average rental rate has risen by 28% to $24.7 per sq. m per month.

According to experts, the average rental cost has increased due to the opening of the DIM Tower business center.

Clothing and footwear sales remain a key retail segment. Prominent tenants in this segment include stores like Nike, Adidas, Li-Ning, and Urban Store. The price segment for shops and restaurants ranges from low to mid-tier.

 

Taras Shevchenko Street

Taras Shevchenko Street, located near the "Mingurik" metro station and Tashkent's central railway station, is one of the most popular streets for restaurants. It is dominated by mid-range restaurants and cafes, along with several premium establishments.

The average rental rate on this street is $31.2 per sq. m per month, a 23% increase compared to last year, indicating the street's growing popularity, experts note.

During the day, the street attracts office workers and students, while in the evenings and on weekends, it draws city residents with its diverse and high-quality dining options.

 

Shota Rustaveli Street

Shota Rustaveli Street, running from "Friendship" Park to "Aybek" metro station, is characterized by heavy traffic and a high density of commercial establishments. The main tenants here are small startups and local businesses.

The average rental rate on the street is $24 per sq. m per month, an 8% increase compared to last year.

Key tenants include Dolce Italia, B&B, "ChayKof," and BrandStore. The price segment for shops and restaurants varies, making the street versatile. However, a high tenant turnover is observed on this street.

 

Block C-1

Block C-1 has also been added to the study, encompassing Mustaqillik Avenue and Abdulla Kadiri Street. The primary traffic is generated by residents of nearby residential areas, as well as visitors to Ecopark, Central Park (Telman), and a large educational center.

Rental rates in the area are not uniform and can range from $17 in less frequented zones to $35 in the most popular ones. The average rental rate on the street is $25 per sq. m per month.

The main tenants are cafes and restaurants such as KFC, Wok, Wendy’s, and "ChayKof."

 

Shakhrizabz Street

Shakhrizabz Street, from Amir Temur Avenue to Istikbol Street, stands out for its good transport accessibility and heavy traffic due to its proximity to the metro and numerous facilities. Cafes and restaurants constitute the largest share of street retail here (30%).

The average rental rate is $26.5 per sq. m per month.

One of the challenges for retail on this street is the lack of parking spaces, which complicates the shopping experience, the study notes.


Source: Spot.uz

Photo: Ilya Semendeev / Spot