Center for Economic Research and Reforms in Uzbekistan on results of real estate reform

Business Materials 25 August 2020 13:52 (UTC +04:00)
Center for Economic Research and Reforms in Uzbekistan on results of real estate reform

BAKU, Azerbaijan, Aug. 25


Reforms of April 1, 2020, regarding purchasing and permanent registration of real estate in Tashkent city and the Tashkent region, did not affect housing prices in any way. This was the conclusion of experts from the Center for Economic Research and Reforms (CERR) which analyze the real estate market, Trend reports citing to the press service of CEIR in Uzbekistan.

CERR conducted a comparative analysis of housing prices in Tashkent, based on data on housing prices in apartment buildings in the period from March 2019 to March 2020. Experts have studied 6,261 real estate purchasing documents.

The analysis showed that on average two-room apartments are sold more often in Tashkent. The average cost of housing in Tashkent per square meter amounted to $639.4.

According to the calculations, an increase in the area makes the price of an apartment more expensive by 1.3 percent. The number of stories of a building, or the height of a multi-story building, also has an impact on the cost of housing, increasing it by 4.6 percent.

The number of rooms also increases the price by 26.3 percent, while the excessive number of rooms decreases the price by 3.7 percent. This is because the area of apartments in Uzbekistan is not large, and large families are trying to increase their number.

On average apartments on the upper floors are cheaper by 2.6 percent. Furthermore, if the house is made of brick, the cost of housing increases by 14.3 percent, since most prefer houses made of brick.

The results also showed a negative impact of current road repairs on the cost of housing, reducing it by 6.1 percent.

The fact that the permission to purchase housing without registration did not affect the prices of apartments, maybe because people from other regions of the country did not have sufficient funds to purchase real estate in the capital.

“Before the cancellation of registration, the purchase of housing was carried out with the help of relatives or close people who had permanent residence in the capital. Together with the adoption of the decree, these citizens re-registered housing in their name, which impacted a large number of contracts,” analysts say.