Investment profitability in Tashkent’s housing market falls sharply

Experts from the Institute analyzed the profitability of investments in multi-storey residential housing in the capital. Given the limited availability of land and a growing population, real estate investment offers both property ownership and a potential source of stable income through rental earnings and capital appreciation over time.

However, data shows that in April 2025, the profitability of investing in residential property in Tashkent fell significantly to 6.2% – a stark decline from the 27.8% recorded in the same month the previous year. During this period, average rental income dropped from 10.9% to 8.5%, while average housing prices decreased by 2.4%.

Profitability varies significantly by district and apartment size:

• 1-room apartments: Shaykhontokhur – 25.1% (April 2024 – 41.4%), Mirobod – 0.4% (24.7%)
• 2-room apartments: Yakkasaroy – 16.2% (12.1%), Uchtepa – -2.0% (27.1%)
• 3-room apartments: Yakkasaroy – 16.8% (27.0%), Uchtepa – 1.6% (23.6%)
• 4-room apartments: Yakkasaroy – 15.6% (25.2%), Olmazor – -2.5% (21.3%)

Those who purchased housing in April 2024 and sold it in April 2025 faced average losses of 2.4% due to the decline in market value. In specific districts, the loss was even greater: 7.4% in Uchtepa, 4.4% in Yunusabad, and 4.2% in Olmazor. Conversely, higher-end districts such as Shaykhontokhur and Yakkasaroy saw modest average gains of around 6%.

Rental income continued to decline in April 2025. While the average rental return in April 2024 was 10.9%, it fell to 8.1% a year later. Among all districts, the highest average rental profitability was recorded in Mirobod (9.2%) and Shaykhontokhur (8.9%), down from 11.2% and 12.6% respectively.

1- and 2-room apartments, traditionally considered more attractive for investment due to higher returns, also experienced declines:

• 1-room apartments: down to 8.5% (from 14.3% in January 2025 and 30.2% in April 2024)
• 2-room apartments: down to 6.3% (from 7.5% in January and 25.5% in April 2024)

Similarly, returns on 3- and 4-room apartments declined to 6.7% and 3.3% respectively (from 24.9% and 30.6% in April 2024).

Between April 2024 and April 2025, the average interest rate on foreign currency time deposits for individuals hovered around 5.1%, while deposits in the national currency offered a much higher average return of 22%.

This trend suggests two key developments:

1. Returns on residential real estate are approaching parity with foreign currency time deposit yields.
2. National currency deposits are becoming increasingly attractive due to their higher interest rates.