Tashkent, Uzbekistan (UzDaily.com) — Specialists from the Institute of Macroeconomic and Regional Studies under the Cabinet of Ministers of the Republic of Uzbekistan (IMRI) have analyzed the return on investments in multifamily homes in Tashkent.

Investing in real estate is not only about owning property but also about securing long-term financial stability and profitability.

The essence of such investments lies in generating income from two sources: rental income and capital gain (or loss) from changes in property value over time. These two sources not only generate income but also allow the investor to adapt to market changes.

In Tashkent, the return on real estate investments has been declining. In particular, in January 2024, the return on investments in multifamily homes in the capital slowed from 32.4% in February 2024 to 7.6%.

During this period, the return on investments in multifamily homes varied significantly depending on the district and the number of rooms:

1-room apartments:

Mirabad: -1.7% (February 2024: 53.0%)

Bektemir: 54.3% (46.8%)

2-room apartments:

Uchtepa: 2.6% (27.0%)

Yakkasaray: 15.1% (24.2%)

3-room apartments:

Bektemir: -5.5% (33.7%)

Yakkasaray: 10.4% (22.8%)

4-room apartments:

Bektemir: -7.3% (37.9%)

Chilonzor: 16.5% (19.8%)

Profitability from Price Changes in Real Estate: In February 2024, the potential profit from price changes in real estate and rental in the Yakkasaray, Bektemir, and Chilonzor districts averaged 16.1%, 26.9%, and 15.4%, respectively. By January 2025, these figures had dropped to 3.0%, 2.8%, and 0.3%. Additionally, in Tashkent, the profit from price changes has significantly decreased due to the near halt of price increases and slight decreases in January 2024, with the largest declines seen in the Shaykhantahur district (from 35.8% to -0.8%) and Yunusabad (from 30.4% to -3.4%).

Profitability from Rental Income: In January 2024, the annual average return from rental income in the Mirabad district was 10.0% (10.4% in February 2024), in Mirzo-Ulugbek was 9.9% (10.6%), and in Shaykhantahur was 9.8% (11.6%). These figures were lower in districts with lower rental prices, such as Olmazar (8.9%, 9.4%), Uchtepa (8.9%, 8.6%), and Sergeli (8.9%, 8.4%).

The profitability of investment projects in highly-rated 1- and 2-room apartments is also declining. In February 2024, the return on investments in 1- and 2-room apartments was 35.6% and 30.8%, respectively, but by January 2025, these figures had dropped to 14.3% and 7.5%. During the same period, returns for 3- and 4-room apartments significantly decreased (to 5.5% from 33.0% in February 2024, and to 2.9% from 30.3%).

Since mid-2024, the return on investments in real estate has been lower than the returns on deposits in the national currency for individuals. In 2023-2024, the average interest rate for foreign currency deposits was around 5%, while rates for deposits in the national currency ranged from 21% to 22%.

In developing countries, the trend of saving in real estate can briefly enhance socio-economic stability. However, in the long term, it is essential to develop capital markets and provide the population with diversified investment opportunities. This way, savings not only remain protected but, by investing in various sectors of the national economy, contribute to faster growth.