Published on and written by Cyril Jarnias
The idea of “going where others aren’t yet going” often comes up among real estate investors seeking yield. Uzbekistan is checking more and more boxes in this logic. A still-young market, strong economic growth, double-digit rental yields in some neighborhoods of Tashkent, progressive reform of investment law: all of this is now attracting foreign funds, developers, and individuals.
Investing in Uzbekistan presents real potential but requires a good understanding of the local market. The ownership structure is different, interest rates can reach around 20%, rules for foreigners are very specific, and the national currency (the som) is volatile. A cautious and well-informed approach is essential.
This report assesses the reality of the Uzbek market, the yields, prices, legal rules, risks, and the strategies that are beginning to emerge, based on available data for 2024–2025.
A Market Taking Off, Driven by Growth and Reforms
Uzbekistan is one of the most dynamic markets in Central Asia. With a GDP of around $82 billion and annual growth of 5.5 to 6.5%, the country is performing above the regional average. Since 2016, the authorities have launched a series of reforms: currency liberalization, gradual opening to foreign capital, privatizations, and above all a more protective legal framework for investors.
These initiatives aim to elevate the country to upper-middle-income status and position it as a key regional player between Europe and Asia, with the real estate sector identified as an essential pillar of this ambition.
The evolution of real estate prices over the last ten years tells this story of transformation. Before 2017, the market was barely progressing, with annual increases of 1 to 3%. The wave of reforms then triggered a more sustained phase.
| Period | Average Annual Residential Appreciation |
|---|---|
| Before 2017 | 1–3% |
| 2017–2020 | 5–7% |
| 2020–2022 | 7–9% |
| 2023 to present | 9–12% |
Concurrently, foreign direct investment exceeded $7.2 billion in 2023, with more than 1,000 projects launched since 2017. A significant portion of these flows is directed towards residential construction, shopping malls, offices, and major urban projects like “Tashkent City” or “New Tashkent.”
Tashkent, Heart of the Market: Yields and Price per Square Meter
For any investor looking at Uzbekistan, Tashkent is the natural entry point. The political and economic capital, the country’s most populous city, it concentrates the majority of upscale projects, modern offices, and expatriate residences.
The gross yield figures in Tashkent are far from anecdotal. Available data indicates an average rental yield of 8.26% in the city center and 9.64% outside the center. Across the entire residential stock, a September study mentions an average rental profitability around 10%, a level comparable to that observed in South Africa (9.9%) and close to the world’s most profitable countries.
This figure gives an idea of the structure of the city’s real estate market.
| Apartment Type | Location | Average Monthly Rent (UZS) | Observed Range (UZS) |
|---|---|---|---|
| 1 Bedroom | City Center | ~8,354,000 | 5,200,000 – 11,999,990 |
| 1 Bedroom | Outside Center | ~5,351,000 | 3,865,520 – 7,731,040 |
| 3 Bedrooms | City Center | ~15,270,000 | 10,000,000 – 29,999,990 |
| 3 Bedrooms | Outside Center | ~9,713,500 | 6,500,000 – 15,000,000 |
On the purchase price side, levels remain significantly lower than in many Asian capitals, while offering higher yields.
| Location in Tashkent | Average Price per m² (Approximate) | Comment |
|---|---|---|
| Center, standard new build | $1,000–$1,200/m² | Recent projects close to the city core |
| Center, unrenovated Soviet-era | $650–$800/m² | Old buildings requiring full renovation |
| Tashkent City (luxury, shell condition) | $1,500–$2,000/m² | High-end units delivered unfinished |
| 3–4 metro stations from center | $700–$800/m² (cash) | New build with cash payment |
| Further-out periphery | ~$600/m² (cash) | Entry-level product |
Construction and renovation costs allow for precise quantification of “value-add” strategies. Creating quality square meters from Soviet-era structures or raw “shells” is often the core of profitability.
| Type of Cost | Indicative Amount (USD/m²) |
|---|---|
| New construction (excluding land) | ~$400 |
| Complete renovation of an old apartment | ~$250 |
| Finishing a new raw apartment | $150–$180 (standard) |
| Finishing a luxury unit (Tashkent City) | $200–$250 |
On paper, buying in the center for around $800–$1,000/m², renovating or finishing for $150–$250/m², and renting for gross yields close to 10% remains possible in several segments.
A Map of Profitability by Tashkent Districts
Beyond averages, the detailed geography of Tashkent matters enormously. A 2023 study by the Institute of Macroeconomics and Regional Studies scrutinized the capital’s districts.
In terms of annual price increase, certain neighborhoods clearly stand out.
| Tashkent District | Annual Housing Price Increase |
|---|---|
| Yunusabad | 37.1% |
| Mirzo-Ulugbek | 35.7% |
| Mirabad | 33.7% |
| Sergeli | 27.8% |
| Almazar | 24.4% |
When it comes to rental profitability, the ranking partially shifts.
| District | Average Rental Yield |
|---|---|
| Mirzo-Ulugbek | 12.0% |
| Chilanzar | 10.6% |
| Mirabad | 10.4% |
| Sergeli | 8.5% |
| Uchtepa | 8.2% |
Drilling down by property type, the differences become even more pronounced. Three-bedroom units are particularly interesting in certain sectors, as are studio/1-bedroom units in areas undergoing densification.
Key takeaways from this study:
A study of Tashkent’s rental market reveals differentiated yields by district and number of rooms. Three-bedroom units see the highest price increases in Yunusabad, Chilanzar, and Yashnabad, with very good yields also in Mirzo-Ulugbek and Mirabad. Four-bedroom units are particularly profitable in Chilanzar, Mirabad, Yakkasaray, Yunusabad, and Sergeli. Two-bedroom units perform best in Shaykhantakhur and Almazar. Studios and one-bedrooms in Yashnabad offer the fastest return on investment for this type, with yields around 12%. Finally, large five-bedroom units show yields of 11.4% in Mirzo-Ulugbek and 9.1% in Uchtepa.
For an investor, this means it’s not enough to target “the center” in a broad sense. The combination of district + unit size significantly affects performance. A studio in Yashnabad or a three-bedroom in Mirzo-Ulugbek are positioned very differently than a large apartment on the edge of a less dynamic district.
Regional Comparison: Tashkent vs. Bishkek, Almaty, or Astana
Central Asian markets have often developed in parallel, with similar investor profiles (CIS, Turkey, Middle East). Comparing figures helps situate Tashkent.
| City | Price-to-Income Ratio | City Center Rental Yield | Outside Center Rental Yield |
|---|---|---|---|
| Tashkent | 12.90 | 8.26% | 9.64% |
| Bishkek | 14.20 | 8.30% | 8.70% |
| Almaty | 10.80 | 7.90% | 8.00% |
| Astana | 8.50 | 9.20% | 9.70% |
The price-to-income ratio indicates that a standard home in Tashkent represents about 12.9 years of average net salary, a significant but not outrageous level compared to Bishkek or many emerging market capitals. Gross yields remain in the upper range for the region, making the price/yield combination rather attractive.
Compared to other Asian capitals like Bangkok (yields of 4–6% for ~$6,000/m²), Manila (~5% for ~$4,000/m² in luxury), or Jakarta (often >7% but without full ownership for foreigners), Tashkent offers solid rents while price per square meter hasn’t yet seen a sharp rise, making it an attractive market for rental yield.
The Rise of Short-Term Rentals: Tashkent, Samarkand, Bukhara
The rise in tourism and business travel is logically fueling the growth of Airbnb-type rentals. Data aggregated by a company analyzing this segment paints an instructive picture of the main cities.
| City | Active Listings (Short-Term) | Average Monthly Revenue (USD) | Average Daily Rate (USD) | Occupancy Rate |
|---|---|---|---|---|
| Tashkent | 625 | $475.52 | $64.17 | 36.37% |
| Samarkand | 119 | $236.89 | $51.59 | 26.72% |
| Bukhara | 47 | $211.29 | $55.90 | 18.73% |
Nationally, Tashkent clearly dominates, with over 600 active listings. In the Tashkent region, a subsample even shows improved performance for certain segments, with average monthly revenues approaching $667 and an occupancy rate close to 43%.
The regulatory framework for short-term rentals (Airbnb) in Tashkent, Samarkand, and Bukhara is currently not very restrictive, but rumors of a ban are circulating. No radical measures have been confirmed, but this uncertainty constitutes a major risk, especially for a strategy entirely based on this model.
Major Urban Projects: Tashkent City, New Tashkent, and the Transformation of Samarkand
It’s hard to understand the future of the market without looking at the mega-projects reshaping urban planning.
In Tashkent, the “Tashkent City” project—in the heart of the capital—concentrates international hotels, a conference center, a shopping mall, a future financial center, a park, and high-end residential complexes. Residential units there are sold for between $1,500 and $2,000/m² in shell condition, with finishing costs above average ($200–$250/m²). This segment clearly targets a wealthy local and international clientele, willing to pay a premium for the address and amenities.
Total area in hectares of the ‘New Tashkent’ new city project east of the capital.
In Samarkand, the transformation is on a different scale but with the same ambition. The city captures a growing share of cultural tourism. Municipal boundaries will be expanded by 17,500 hectares, entire residential zones are being created (over 700 buildings for about 300,000 residents across three new neighborhoods), and an eco-district is to house 100,000 residents with $50 million invested in infrastructure. The airport and road networks are being strengthened, including new logistics centers along major arteries.
Major development projects stimulate demand for all types of real estate (housing, offices, retail, logistics) and redefine urban geography. They transform peripheral areas, once secondary, into new centralities, thus altering the traditional balance between center and periphery.
Investing as a Foreigner: What the Law Allows (and Doesn’t Allow)
At the heart of Uzbekistan’s specificity lies a key rule: land remains state-owned. A foreigner cannot own the land, but can own the buildings and structures built on it.
The legal framework is primarily defined by the Law on Investments and Investment Activity, the Civil Code, the Land Code, and the law on property. One of the most important elements for an investor is the stabilization clause: if a new law worsens investment conditions, the regime in effect at the time of the investment continues to apply for ten years, except for national security exceptions. The text also guarantees protection against nationalization and strictly regulates cases of requisition (expropriation in case of disaster or exceptional circumstances, with adequate compensation).
For foreigners, rules for accessing ownership depend on several parameters: residency status, country of origin, amount invested, and geographic zone.
Several regimes coexist:
– A general regime, which notably stipulates that, to purchase in Tashkent, one must in principle have been a permanent resident of the city for several years and be limited to new constructions of a minimum amount (approximately $89,000 according to schedules expressed in calculation units).
– Special regimes, based on presidential decrees and resolutions, which ease conditions for nationals from a list of countries and introduce specific investment thresholds.
The main thresholds to remember for an individual foreign investor are as follows.
| Region / City | Min. Threshold for Residency (USD) | Min. Threshold for Purchase Without Residency, Under-Construction New Build (USD) | Min. Threshold for Purchase Without Residency, Completed New Build (USD) |
|---|---|---|---|
| Tashkent City + Region | $300,000 (previously $400,000) | $150,000 | $180,000 |
| Samarkand, Bukhara, Namangan, Andijan, Fergana, Khorezm | $200,000 | $70,000 | $85,000 |
| Karakalpakstan + Other Regions | $100,000 | Same as general regional schedule | Same |
Investments reaching the levels of $100,000, $200,000, or $300,000 for new residential properties in these zones can serve as a basis for obtaining a residence permit. Conversely, purchases made only under the eased regime ($70,000/$85,000 or $150,000/$180,000) do not automatically entitle the buyer to permanent residence.
A foreigner can acquire a property by establishing a local company with a minimum capital of about 400 million som (nearly $42,000). The law requires the company to engage in real economic activity (hotel, rental, services, etc.) and prohibits the creation of a company with the purely passive object of holding real estate. Companies with annual revenue below 1 billion som (approx. $100,000) can opt for a simplified tax regime. This regime imposes a 4% tax on revenue for certain activities like short-term rental, but it can be as high as 30% for long-term rental, significantly impacting net yield.
Residency Through Real Estate: A Uzbek “Golden Visa” in the Making
Starting in 2025, Uzbekistan formalized a residency-by-investment program, including a real estate component. The approach aims to be different from some purely financial schemes: here, the logic is more about linking residency with participation in the country’s development.
Three main pathways exist to obtain a long-term residence permit:
Various investments grant access to a temporary or long-term residence permit in Uzbekistan.
Purchase of new real estate exceeding regional thresholds, potentially leading to indefinite residence or a renewable five-year permit.
Investment starting from $250,000 for a renewable three-year residence, or $3 million for a ten-year permit.
Non-refundable contribution of at least $250,000 to a public fund, granting a five-year permit.
Close family members (spouse, children, parents) can generally be included without additional contribution under the real estate and business pathways, but a financial supplement is required in the case of the pure donation scheme.
Access to potential citizenship by investment is not yet in place, although a threshold of $1 million has been discussed. For now, the classic naturalization pathway (five years of continuous residence, legal income, renunciation of other nationalities) remains the reference.
Taxation: Between the Appeal of Gross Yields and the Reality of Net Returns
Before being seduced by yields of 10%, it’s better to understand the tax layer. The structure is relatively simple on the surface but varies depending on whether one invests as an individual or through a company, as a resident or non-resident.
For an individual non-resident foreign investor, three main categories of taxes concern real estate:
– Rental income tax,
– Property tax (and potentially land use tax),
– Capital gains tax upon resale.
Non-residents are taxed at 20% on their Uzbek income (rents, capital gains). Residents benefit from a 12% rate and an exemption from capital gains tax after 36 months of holding, which does not apply to non-residents.
Property tax ranges between approximately 0.2% and 1.5% of the cadastral value for individuals, depending on the property type and location. Some information mentions a rate of 1.5% of the assessed value for foreign owners, which remains moderate compared to many Western countries.
Maximum percentage of the acquisition price represented by immediate fees in a real estate transaction.
Companies benefit from more complex mechanisms: corporate income tax around 15%, ability to deduct expenses (interest, depreciation, works), use of the simplified revenue-based regime, or integration into special economic zones offering exemptions from property tax, profit tax, and water usage tax for several years, depending on the investment volume.
For a foreign investor, the combination of gross yield, local taxation, double taxation treaty with their country of residence, and withholdings in their home country will determine the real net return.
Financing: High Local Rates, the Advantage of Cash
One element often surprises investors used to cheap credit: the cost of debt in Uzbekistan is very high. The central bank’s key rate was around 14% at the end of 2025, and average bank loan rates exceeded 23%. A dataset on mortgage loans in Tashkent mentions an average rate of about 21.6% for 20-year fixed loans, with ranges from 15% to 27% depending on the product.
For residents, local banks require a down payment of 30 to 50%. Access to credit for foreigners is very limited, even via local structures. Subsidized loans (rates around 17.5-18%, partially offset by the state) exist for homeownership by Uzbek households but are not designed for foreign rental investors.
Under these conditions, two approaches dominate:
– 100% cash or quasi-cash financing, sometimes supplemented by credit lines obtained in the investor’s country of residence at much lower rates;
– Utilizing installment payment plans offered by developers for new projects (30–50% down payment, then payments over 1 to 3 years).
Cash payments often allow for significant discounts, on the order of 15 to 20% off the listed price for “off-plan” projects. On tickets of $50,000 to $150,000, these discounts represent a yield leverage much more powerful than any local credit leverage.
Investment Strategies: From Off-Plan Studios to Ground-Floor Commercial Space
The field is vast, but a few concrete strategies are emerging as particularly suited to the current market profile.
A first approach involves targeting small apartments (about 40 m², often sold as studio/1-bedroom units of 50–60 m² gross area) in new projects near the center or a metro station, on intermediate floors (in the Uzbek context, ground and first floors are often more expensive, prized for commercial use). The idea is to buy early-stage, with cash payment and a discount, then bank on appreciation to around $1,500/m² over a five-year horizon, while capturing rents of 8–11% gross.
A real estate investment strategy involves acquiring apartments in well-located old Soviet-era buildings in the city center for about $650–$800/m². An additional investment of about $250/m² is allocated to highly standardized renovation work. The renovated apartment is then sold or rented with a “modern” positioning, capitalizing on the building’s structural solidity and excellent location to generate a capital gain.
In the commercial segment, announced yields are very competitive: 11–12% for retail space in high-traffic areas, about 9% for quality offices in the best districts, and nearly 8% for warehouse/logistics. In Tashkent, the landscape of Class A and B office space is expanding rapidly, with over half a million square meters of leasable area, but vacancy rates remain high in some high-end office segments, while new-generation shopping malls are almost fully occupied.
The warehouse market is dominated by the capital and its region by over 70%.
Finally, short-term rentals in historic tourist areas (Samarkand, Bukhara) open the way to strategies of converting traditional houses into charming guesthouses or tourist apartments. Gross yields can then exceed those of classic residential, but with more volatility and increased exposure to regulatory risks.
On-Site Management: The Key Role of Property Managers
Investing remotely in an emerging market requires a solid local relay. In Uzbekistan, a fairly structured offering of real estate asset management companies has developed, notably in Tashkent, Samarkand, and Bukhara.
Specialized operators offer full-service rental management: tenant screening, listing, rent collection, management of expenses and repairs, legal assistance, as well as financial and tax reporting. They can also assist with purchase or resale. Digital tools (applications, dashboards, alerts) ensure transparent management, even remotely.
For a foreign investor, outsourcing management not only helps limit vacancy risks and non-payments but also navigate the administrative maze (lease registration, rental income declaration, interactions with local authorities).
Several players are positioning themselves in this niche, from local agencies like Uylar Sales to more integrated managers, as well as individual brokers speaking multiple languages. One name that frequently comes up in the Tashkent market is, for example, a trilingual agent (Uzbek, Russian, English) regularly cited as a key contact for transactions and leasing of residential and commercial units.
Purchase Procedure: Formalism Not to Be Underestimated
The real estate transaction procedure is highly regulated. Any purchase must be formalized before a notary, with mandatory use of the automated notarial system, followed by registration of property rights with the State Cadastre.
For a real estate purchase in Uzbekistan, a foreign buyer must provide a valid passport with visa or residence permit, a Uzbek tax identification number, proof of funds and their origin, as well as the seller’s ownership documents (extract from the registry, certificate of commissioning, property appraisal, technical passport). For a company, add incorporation documents, internal resolutions authorizing the purchase, and powers of attorney if necessary. All foreign documents must be legalized or apostilled, then translated into Uzbek or Russian by a certified translator.
The complete timeline varies from four to eight weeks in practice, between negotiation, signing a preliminary agreement, completing due diligence, notarized signing, and cadastral registration. The physical presence of the buyer is not always essential: it is possible to act via power of attorney by entrusting the file to a local lawyer.
Legal verification steps are crucial, particularly regarding land rights. It’s necessary to check not only the building’s chain of ownership but also the nature of land use rights (long-term lease, allocation, any restrictions in historical or sensitive zones). A number of past disputes in the country have involved projects built on land with unclear status or that was later reclassified.
Risks: Currency, Evolving Law, and Bureaucracy
Despite the narrative of a booming market, Uzbekistan remains an emerging investment environment, with a series of specific risks that a seasoned investor cannot ignore.
The volatility of the som is one of the most obvious. The currency has experienced significant phases of depreciation, even though the 2017 reforms clarified the exchange rate regime. For an investor calculating in dollars or euros, the real performance of their investment will depend as much on the UZS/USD pair as on the rise in local rents and prices.
The legal framework, though improving, remains in flux. The investment law protects investors, but the country has not yet reached the regulatory stability of a mature economy. Taxation is evolving rapidly, with a major reform plan scheduled for 2026–2028. Furthermore, incentives, such as special economic zone regimes, undergo regular adjustments.
Bureaucracy, finally, can slow down operations, whether it’s opening a bank account, obtaining tax numbers, registering companies, or residency procedures. In a country ranked 121st out of 180 in Transparency International’s Corruption Perceptions Index, following procedures and being assisted by reputable professionals is not a luxury but a necessity.
To these structural risks are added more classic pitfalls: variable construction quality in new builds, sometimes complex-to-trace property titles, uneven water and electricity networks, dependence on the Russian economic situation for a portion of remittances, etc.
A Niche Market for Patient and Structured Investors
Investing in Uzbek real estate does not fit the profile of a European-style “turnkey” investment. It’s a market where preparation—legal, tax, technical—matters more than speed, where one cannot skip having a local lawyer, a trusted manager, and meticulous checks.
Potential gross yields in the real estate market discussed are close to 10%.
For an investor ready to accept an additional degree of complexity, to think in a five-to-ten-year horizon, and to properly structure their presence (ownership, taxation, management), Uzbekistan today offers a window of opportunity that may not present itself twice.
The question is not just whether to invest, but rather how and with what level of exposure. In a diversified international portfolio, a “Tashkent–Samarkand–Bukhara” component can play the role of a performance driver, provided one enters with the same rigor that the country is trying, itself, to instill in its economic transformation.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
