Tashkent, Uzbekistan (UzDaily.com) -- The Central Bank of Uzbekistan has presented an overview of the dynamics in the construction materials market, highlighting significant sector expansion, especially in residential construction.

According to consumer sentiment surveys, 15-20% of respondents are planning or have already spent money on home repairs, while about 8% are considering purchasing an apartment.

Between 2021 and 2023, investments in residential construction amounted to 71.8 trillion sums ($6.4 billion) from private funds, indicating high demand in this sector. This, in turn, leads to an increase in domestic supply and the development of the construction industry.

In the first half of 2024, around 2,000 new construction enterprises were established, bringing the total number of construction entities in the country to over 30,000, which represents approximately 7% of all economic entities. The construction sector also accounts for 7% of all enterprises with foreign investment.

High sector activity is resulting in increased domestic supply of construction materials, which stabilizes prices and helps reduce housing costs in the primary market.

However, some construction materials still rely heavily on imported components, such as timber, ferrous metals, and paints and varnishes. For basic construction materials like Portland cement, there is a trend towards reducing imports.

In May 2024, inflation for materials used in housing maintenance and repairs fell below 1% year-on-year. Prices for imported and domestic cement decreased by approximately 15% over the year, and the cost of imported ferrous metals continues to decline.

The Central Bank noted that, under current conditions, there are no observable price risks from the import channel for construction goods.