The return on investment in real estate in Tashkent has significantly decreased

According to the Institute for Macroeconomic and Regional Studies (IMRI), the return on investment in residential real estate in Tashkent in January 2025 decreased by almost 25 % compared to February 2024.

Dynamics of profitability

Analysts calculated the overall profitability indicator, taking into account rental income and changes in apartment prices. If in February of last year the average yield for the city was 32,4 %, then in January 2025 it dropped to 7,6 %.

The return on investment varies depending on the area and type of housing.

• One-room apartments:
  • In Mirzo-Ulugbek district the indicator decreased from 53 % before -1,7 %.
  • In Bektemir districtin contrast, the yield increased from 46,8 % before 54,3 %.
• Two-room apartments:
  • In Uchtepa district the decrease was from 27 % before 2,6 %.
  • In Yakkasaray district the indicator dropped from 24,2 % before 15,1 %.
• Two-bedroom apartments:
  • In Bektemir district profitability decreased from 33,7 % before -5,5 %.
  • In Yakkasaray district the drop was from 22,8 % before 10,4 %.

Lower profit from rising housing prices

The profitability of increasing the value of real estate also decreased significantly.

• In Yakkasaray, Bektemir and Chilanzar districts indicators decreased from 16,1 %, 26,9 % and 15,4 % before 3 %, 2,8 % and 0,3 % accordingly.
• In Shaykhantakhur district the yield fell from 35,8 % before -0,8 %, and in Yunusabad district – with 30,4 % before -3,4 %.

Reduced rental profitability

The profitability of renting out housing also shows a downward trend:

• In Mirzo-Ulugbek district the indicator decreased from 10,6 % before 9,9 %.
• In Shaykhantakhur district – with 11,6 % before 9,8 %.
• In Almazar district – with 9,4 % before 8,9 %.

General trend

The largest drop in profitability was recorded in the most liquid real estate options.

• One-room apartments: decrease from 35,6 % before 14,3 %.
• Two-room apartments: falling from 30,8 % before 7,5 %.
• Two-bedroom apartments: reduced to 5,5 %.
• Four-room apartments: drop to 2,9 %.

For the first time in recent years, the return on investment in real estate in Tashkent was lower than the average rates on bank deposits. In 2023-2024, interest rates on sum deposits were as follows: 21–22 %, and for currency transactions-about 5 %.