Commercial Real Estate - Uzbekistan

The projected value of the Commercial Real Estate market market in Uzbekistan is expected to reach US$115.80bn in 2024.
It is anticipated that the market will experience an annual growth rate (CAGR 2024-2029) of 3.53%, leading to a market volume of US$137.70bn by 2029.
When compared globally, the United States is expected to generate the highest value in the Real Estate market, with a projected value of US$25.3tn in 2024.
Uzbekistan's commercial real estate market is experiencing a surge in demand as foreign investors flock to the country's growing economy.

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 Uzbekistan is experiencing significant growth and development in recent years.

Customer preferences: Customers in Uzbekistan are increasingly interested in investing in commercial real estate properties. This is driven by several factors, including the potential for high returns on investment and the stability of the real estate market. Additionally, there is a growing demand for commercial spaces from businesses looking to expand or establish their presence in the country.

Trends in the market: One of the key trends in the commercial real estate market in Uzbekistan is the increasing demand for office spaces. With the country's growing economy and the rise of small and medium-sized enterprises, there is a need for modern and well-equipped office spaces. This trend is particularly evident in major cities like Tashkent, where the demand for office spaces is outpacing supply. As a result, developers are focusing on constructing new office buildings to meet this demand. Another trend in the market is the growth of the retail sector. The increasing purchasing power of consumers in Uzbekistan has led to a rise in demand for retail spaces. This has attracted both local and international retailers to expand their operations in the country. As a result, there is a need for new retail developments and shopping centers to cater to this demand.

Local special circumstances: Uzbekistan has implemented several reforms to attract foreign investment in the real estate sector. This includes the introduction of new laws and regulations that protect the rights of investors and provide incentives for foreign companies to invest in the country. Additionally, the government has prioritized the development of infrastructure, which has further boosted the commercial real estate market.

Underlying macroeconomic factors: The growth of the commercial real estate market in Uzbekistan can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced strong economic growth in recent years, which has created a favorable environment for investment. Additionally, the government's efforts to diversify the economy and attract foreign investment have contributed to the growth of the real estate sector. In conclusion, the Commercial Real Estate market in Uzbekistan is experiencing significant growth and development. Customer preferences for commercial properties, such as office spaces and retail spaces, are driving the demand in the market. The government's reforms and macroeconomic factors, such as strong economic growth and efforts to attract foreign investment, are also contributing to the growth of the market. Overall, the future looks promising for the commercial real estate sector in Uzbekistan.

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.