CERR analyzes how the sales of real estate and cars changed in Uzbekistan in March
Tashkent, Uzbekistan (UzDaily.com) -- The Center for Economic Research and Reforms (CERR) analyzed how the real estate and vehicle market responds to the coronavirus crisis in Uzbekistan in March 2021.
According to the calculations of CERR, along with the demand for real estate in Uzbekistan, car sales are growing for the second month in a row.
The CERR regularly analyzes changes in demand in the real estate and car markets. The increase in demand in these markets in January-March this year indicates a full recovery of economic activity in Uzbekistan.
In March 2021, the number of real estate contracts concluded in the country remained unchanged compared to February and amounted to 20,200, which is 34.4% more than in March last year.
In the city of Tashkent, which accounts for more than 30% of the real estate market, the number of concluded purchase and sale agreements made up 6,170, which is 0.9% less than in February of this year. At the same time, growth compared to the same period in 2020 made up 32.6%, which in turn also shows that the demand for real estate has returned to its long-term trend.
Regionally, the highest annual growth rates of concluded contracts with real estate were observed in Navoi (18%) and Ferghana (10.7%) regions and the Republic of Karakalpakstan (10.4%). It should be noted that this indicator decreased in Syrdarya (8.6%), Tashkent (8.1%) and Khorezm (8%) regions.
A gradual recovery of economic growth in the country and an increase in demand for real estate can traditionally become a mechanism for further price increases.
However, one of the measures that are now really capable of supporting the real estate market is the beginning of a large-scale housing program, for which the government will allocate US$11.5 trillion by the end of the year (US$ 1.1 billion), which is 4 times more than last year. In particular, this year it is planned to provide 45 thousand families with affordable housing.
Thus, the pace of urbanization is expected to accelerate due to an increase in affordable housing, which implies an improvement in business activity, demand, and the quality of life of people in general.
In addition, the government is implementing a set of measures aimed at supporting the construction industry as a driver of demand and, first of all, housing construction.
In March, the demand of the population in the car market for the second month in a row showed moderate growth, having increased by 7.7% compared to February of this yea, car sales grew by 47.4% compared to March 2020, when sales decreased by 34.6% compared to the previous month as a result of a lockdown in the republic.
During the reporting period, the number of registered and re-registered cars increased rapidly in the Republic of Karakalpakstan (31.5%), Khorezm (30.5%), Jizzakh (23.5%) regions.
At the same time, a significant decrease was recorded in Bukhara (7.9%), Kashkadarya (7%) and Andijan (4.3%) regions.
The automotive sector is undoubtedly an effective lever to quickly stimulate economic growth in the country.