Commercial Real Estate - Tajikistan

The Commercial Real Estate market market in Tajikistan is expected to reach a value of US$7.06bn by 2024.
It is projected to experience an annual growth rate (CAGR 2024-2029) of 1.74%, ultimately leading to a market volume of US$7.70bn by 2029.
In terms of global comparison, the United States is anticipated to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
The commercial real estate market in Tajikistan is experiencing a surge in demand due to foreign investments and infrastructure development projects.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Tajikistan has been experiencing significant growth in recent years. Customer preferences in the market have shifted towards modern and well-equipped office spaces, as well as retail and residential properties in prime locations. This trend can be attributed to the country's improving economic conditions and increasing foreign investment. Tajikistan, located in Central Asia, has seen a rise in foreign direct investment, particularly in the mining and energy sectors. This has led to an increase in job opportunities and a growing expatriate population, which has created a demand for high-quality office spaces. Companies are now looking for modern facilities that can accommodate their growing workforce and meet international standards. In addition to office spaces, there has also been a growing demand for retail properties. As the country's middle class continues to expand, consumer spending has increased. This has led to the development of shopping malls and retail centers, catering to the needs and preferences of the growing population. Retailers are now looking for well-designed spaces that can attract customers and provide a pleasant shopping experience. Residential properties in prime locations have also become highly sought after in Tajikistan. The country's urban population is growing rapidly, and there is a shortage of affordable housing options. As a result, developers are focusing on constructing residential complexes that offer modern amenities and are located in convenient areas. The demand for such properties is driven by both local buyers and foreign investors looking to capitalize on the country's real estate market. One of the key factors driving the growth of the Commercial Real Estate market in Tajikistan is the government's efforts to attract foreign investment. The government has implemented various reforms to improve the business environment and has provided incentives to foreign investors. This has resulted in an influx of capital into the country, which has been directed towards the development of commercial properties. However, it is important to note that the Commercial Real Estate market in Tajikistan is not without its challenges. The country still faces infrastructure constraints, including limited transportation networks and inadequate utilities. These factors can impact the development of commercial properties, especially in remote areas. In conclusion, the Commercial Real Estate market in Tajikistan is experiencing significant growth due to improving economic conditions, increasing foreign investment, and changing customer preferences. The demand for modern office spaces, retail properties, and residential complexes in prime locations is driving the development of the market. However, challenges such as infrastructure constraints need to be addressed to fully unlock the market's potential.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.