Tashkent, Uzbekistan (UzDaily.com) — In the second quarter of this year, activity in Uzbekistan’s real estate market remained at a high level. During this period, 88,100 transactions were concluded, up 9.9% compared to the same period of last year. In the first half of 2025, the total number of deals reached 177,500, marking a 10.7% increase year-on-year, according to the Central Bank’s latest review.

The number of contracts directly related to real estate purchase and sale continued to grow, totaling 148,400 in the first six months — a 12.1% increase compared to the same period in 2024.

This surge in activity came against the backdrop of expanding mortgage lending, rising household incomes, and increased investment in housing construction.

Mortgage issuance accelerated significantly in Q2, rising by 36% compared to the same quarter last year. The share of mortgages issued for purchasing newly built housing also grew, reaching 74% of total mortgage lending (up from 57% in Q2 2024).

As a result, the share of purchase-and-sale contracts supported by mortgages rose to 21.3% in the first half of 2025 (compared to 19.9% a year earlier), highlighting the growing role of mortgages in homeownership.

High construction activity and increased housing investment continued to support the primary market. In January–June, real growth in construction works reached 10.7%. The share of investments directed to housing increased to 7.9% from 4.7% in the same period last year, reflecting robust demand.

Developers are also driving supply growth through flexible payment schemes, meeting strong consumer interest in diverse and convenient homebuying options. This not only satisfies demand but also helps expand the primary housing market.

Rising real incomes further boosted demand. In the first half of the year, real household incomes increased by 9.5% compared to the same period in 2024. Combined with the rapid growth of mortgage lending and moderate housing price increases, this has sustained housing affordability.

Price trends remained moderate in Q2, holding close to Q1 levels. Despite solid demand, strong supply helped keep price growth subdued.

By June, prices in the primary housing market had risen by 2.6% year-on-year in soums (2.1% in US dollars). Secondary market prices grew by 2.5% in soums (2.0% in dollars).

Regionally, price growth rates remained uneven. In higher-priced areas such as Tashkent, Tashkent region, Samarkand, and Navoi, price increases were minimal or even slightly declining. Meanwhile, other regions continued to see growth, driven by relatively lower prices, improving infrastructure, and rising demand.

The rental housing market maintained moderate price levels due to increased supply and seasonal demand decline. Since April, rental rates have remained stable, with overall national growth close to zero (0.3% year-on-year in June). In Tashkent, rents continued to fall, down 6.1% year-on-year in June.

In the land segment, the price per 100 square meters (one sotka) in Tashkent stood at 334 million soums in June, 2.5% lower than last year.

Construction materials supply remained stable, though prices for maintenance and repair materials accelerated slightly in recent months, rising 5% year-on-year in June.

Overall, in Q2 2025, thanks to rising transaction volumes and expanding mortgage lending, Uzbekistan’s housing market maintained high activity. The growth in supply and broader homebuying opportunities continue to support demand, ensuring balanced market development and stable price dynamics.