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.
