BAKU, Azerbaijan, May 5
By Klavdiya Romakayeva - Trend:
The balance of repayment of mortgage loans as of January 1, 2021, amounted to 28.3 trillion soums ($2.7 billion), increasing by three times, compared to the same period in 2018 ($923 million), Trend reports referring to the Central Bank of Uzbekistan.
According to the report of the Central Bank, in recent years, the growth in demand for housing and the implementation of measures to provide the population with housing has led to a sharp increase in the volume of mortgage lending in Uzbekistan.
It is reported that the number of mortgage agreements increased in 2020 from 121,700 to 238,000 compared to 2018.
At the same time, the Central Bank explains the volume of mortgage loans and the growth in demand for them by population growth in the country (average growth over the past four years amounted to 1.8 percent), increased investment activity and housing construction in the country, an increase in the real income of the population (the average annual growth over the past four years amounted to 6.9 percent).
In addition, such factors as urbanization in the regions and the expansion of the necessary infrastructure for housing construction, the introduction of a system for providing the population with housing through mortgage loans based on market principles, commercial banks receive a stable source of resources for issuing mortgage loans and simplification of mortgage loans for individual housing construction and allocated to shareholders lead to the growth in demand for mortgage loans.
In the structure of regions, 64 percent of mortgage loans in 2020 fell on five regions, including 35 percent in Tashkent, 10 percent in Samarkand region, 8 percent in the Tashkent region, and 6 percent in the Karakalpakstan Republic.
It was noted that the activity in the real estate market in 2020 was mainly associated with the financial cycle. The share of the number of houses sold in the real estate market under mortgage loans in total real estate sales increased from 22 percent in 2017 to 34 percent in 2020.
Furthermore, in 2020, the share of outstanding mortgage loans in the gross regional product was relatively high in Karakalpakstan Republic (9.1 percent), Jizzakh (8.4 percent), Surkhandarya (8.3 percent), Syrdarya (7.9 percent), Navoi (2.4 percent), Tashkent (3.8 percent), Bukhara (4.4 percent) and Andijan (4.5 percent) regions.
Some 36,134 people were given mortgage loans worth $114 million in 2020. Some $26 million in Tashkent (22.8 percent of the total volume of repaid mortgage loans) and $14 million in Kashkadarya (12.1 percent), in the Karakalpakstan Republic - $12.2 million (10.6 percent) and $8.5 million in Andijan soums (7.4 percent) were repaid.
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