BAKU, Azerbaijan, July 25. Uzbekistan's
residential real estate market expanded sharply in the first
quarter of 2026, with housing transactions rising 48.4% year on
year, driven by stronger mortgage lending, rising household incomes
and a surge in deals ahead of new escrow regulations.
This was reflected in a report published by the Central Bank of
Uzbekistan.
According to the report, 110,100 residential property
transactions were completed between January and March, marking a
significant increase compared to the same period last year.
The strongest growth in housing transactions was recorded in the
Syrdarya region, where sales jumped 67%, followed by Tashkent with
a 64% increase, Andijan region with 56% growth and Navoi region
with 52%.
The Central Bank attributed part of the increase to the
introduction of a new escrow account system for real estate
purchases, which took effect on April 1. Buyers and sellers
accelerated transactions before the new rules entered into force,
resulting in a sharp rise in housing sales during March.
Mortgage lending also remained a major driver of market
activity. Uzbek banks issued 5.7 trillion soums (about $475
million) in housing loans during the first quarter, up 29% from a
year earlier. At the same time, real household incomes increased by
7.8%, supporting continued demand for residential property.
"The high level of activity observed in the real estate market
during the first quarter of 2026 is also being reflected in price
trends. Specifically, in March, prices in the primary market rose
by 8.1% in dollar terms and by 1.8% in soum terms. In the secondary
market, the growth rates were slightly higher: 9.4% in dollar terms
and 3% in soum terms," the statement said.
The Central Bank said the housing market continues to
demonstrate sustainable dynamic, supported by robust demand, active
residential construction and expanding mortgage financing.
According to Trend's analysis, Uzbekistan's housing market is
benefiting from a combination of structural and short-term factors.
Rapid urbanization, rising household incomes, and expanding
mortgage lending continue to support long-term demand. Meanwhile,
the introduction of mandatory escrow accounts on April 1 prompted
many buyers and sellers to complete transactions before the new
rules took effect, temporarily boosting first-quarter activity.
With mortgage issuance rising 29% year on year to 5.7 trillion
soums and real incomes increasing 7.8%, the market remains
underpinned by improving purchasing power. At the same time,
sustained price growth across both the primary and secondary
housing markets suggests demand continues to outpace supply despite
ongoing construction, indicating that Uzbekistan's residential real
estate sector remains one of the country's strongest-performing
domestic investment segments.
