Published on and written by Cyril Jarnias
Interest in secondary residences in Uzbekistan is growing at the same pace as the country opens up to investment, develops its infrastructure, and focuses on tourism. Between the madrasahs of Samarkand, the alleys of Bukhara, and the modernized boulevards of Tashkent, a new type of buyer is emerging: the investor who wants both a charming pied-à-terre and a profitable asset, often operated as a short-term rental.
The market, although young and sometimes complex, offers real potential. It requires mastery of several key aspects: regulations, taxation, exchange rate risk management, and tourism dynamics. The secondary residence is evolving from a simple vacation home into a genuine wealth optimization tool.
A Real Estate Market in Full Acceleration
The macroeconomic context clearly favors the secondary home market. With GDP growth around 5.5–6.5% per year, an economic transformation program (“Uzbekistan 2030”), and a growing middle class, demand for housing is soaring, particularly in major cities and tourist destinations.
Transaction figures illustrate this trend. In the first half of 2025 alone, 136,500 housing units changed hands, representing a 10.6% increase compared to the previous year. In June 2025, 21,000 transactions were recorded, a 3.7% year-on-year increase. Over the entirety of 2023, 272,400 apartments were sold, already 5.7% more than in 2022.
Average annual price increase on the secondary market since 2023, compared to 1–3% before 2017.
A Price Surge, Especially in Major Cities
The data shows a clear contrast between large urban areas and certain regions. In Tashkent, the secondary market experienced spectacular jumps: in one episode, the average price of older housing rose from 10.98 to 15.5 million soums per square meter, a +41.2% increase in one year. At another point, the average price in the capital hovers around 1,075 to 1,100 dollars per square meter on the secondary market, which remains well above other cities.
Some Uzbek regions experienced significant price declines, such as Syrdaryo (-21%), Bukhara (-20%) or Andijan (-16%). This situation reveals a two-tier market: strong pressure in urban and tourist centers, against weaker or erratic dynamics elsewhere. For a secondary residence investor, this creates arbitrage opportunities between expensive but liquid “premium” locations and more affordable regional cities with higher resale risk.
The Key Role of the Secondary Market in Major Destinations
The secondary residence, by definition, is largely situated on the existing market. And the secondary market in Uzbekistan is gaining momentum: prices are rising, volumes remain high, and data is gradually becoming structured. National figures show a 1.8% increase in prices year-on-year for the secondary market recently, with much more pronounced increases in certain regions like Jizzakh (+11.7%), Surkhandarya (+10.9%) or Karakalpakstan (+9.3%).
But it is especially the major tourist cities — Tashkent, Samarkand, Bukhara — that attract the attention of secondary home buyers.
Tashkent, Economic Showcase and Rental Laboratory
The political and financial capital, Tashkent is the country’s most liquid market. Prices are the highest there, but rental demand is also more robust, thanks to a mix of residents, expatriates, temporary workers, and tourists.
The price ranges for apartments (mainly on the primary market, but indicative for renovated secondary) give a good idea of price levels.
| Residential Segment in Tashkent | Property Type | Indicative Price per m² (USD) | Typical Total Budget (USD) |
|---|---|---|---|
| City Center (new) | Modern Apartment | 1,000 – 1,200 | 120,000 – 250,000 |
| Mirabad / Yunusabad Districts | Modern Apt. | 800 – 1,000 | 80,000 – 150,000 |
| Chilanzar / Sergeli | Renovated Soviet Building | 600 – 800 | 50,000 – 100,000 |
| Outer Periphery | Standard Apt. | ≈600 | < 60,000 |
For a secondary residence investor, Tashkent offers two typical scenarios: a pied-à-terre in a central district for occasional personal use and short-term rental the rest of the time; or a more modest apartment on the periphery, conceived primarily as a yield product, under long or medium-term lease.
A simulation on a $100,000 apartment in Istanbul shows an annual gross rental income of approximately $9,600. After deducting expenses and the 12% tax on rental income, the net profitability is about 4.9%. Including an assumption of 8% annual capital appreciation, the potential total return reaches nearly 13%. This case illustrates the expected gross yields, typically 6–8% in the city center and 8–10% in the periphery.
Samarkand, the “Postcard” Secondary Residence
Samarkand is at the heart of the Silk Road imagination. For secondary residences, it is arguably one of the most attractive markets: UNESCO heritage, a strong rise in international tourism, modernized infrastructure (notably with the “Great Silk Road” tourist complex and a new airport).
The secondary market there offers a very diverse range of products: studios or small apartments in the university district, traditional courtyard houses in the historic center, villas or small residences intended to be operated as guesthouses.
| Residential Segment in Samarkand | Property Type | Indicative Price per m² (USD) | Typical Total Budget (USD) |
|---|---|---|---|
| Historic Center | Traditional House | 550 – 700 | 100,000 – 200,000 |
| New Districts | Modern Apartment | 450 – 600 | 60,000 – 120,000 |
| Small Guesthouses | Tourism Building | 300 – 600 | Variable (often >150,000) |
Rental yields there are particularly interesting for secondary residences intended for tourist accommodation. Guesthouses or well-located apartments in the historic part can generate 10–15% gross yield during the high season. Market analyses around Samarkand show average net yields of 6–8% for classic rentals, with segments near the university district potentially reaching 8%.
The short-term rental market is already structured: there are about 111 active rentals of the furnished tourist type, with an average monthly income of about 264 dollars, an average daily rate (ADR) around 48 dollars, and an occupancy rate close to 27.5%. An important sign for the secondary residence investor: the regulatory environment is assessed as “low constraint” for these activities.
Bukhara, Playground for Niche Investors
Bukhara is both a museum-city and a laboratory for more targeted projects. It is ranked third market for short-term rental investment, with about 51 active rentals recorded. The average monthly incomes there are very close to Samarkand (about 265 dollars per property), but the average daily rate is higher (around 56–57 dollars) for an occupancy rate of about 21–22%.
| Rental Indicators – Bukhara (Short-term Rentals) | Average Value |
|---|---|
| Number of Active Rentals | 51 |
| Average Monthly Income per Property | ≈ 265 USD |
| Average Daily Rate (ADR) | ≈ 56–57 USD |
| Average Occupancy Rate | ≈ 21–22 % |
| STR Regulation | Low Constraint |
Property prices there remain well below Tashkent. In the old town, a renovated historic building typically trades between 500 and 650 dollars per square meter, sometimes up to 1,000 dollars for very high-quality properties. In the periphery, standard apartments are rather around 400–500 dollars per square meter.
Rental profitability in short-term rentals during the high tourist season can reach 8 to 11%.
Short-term Rentals: The Secondary Residence as a Rental Asset
The secondary home market in Uzbekistan is closely linked to the boom in seasonal rentals. Whether in Tashkent, Samarkand or Bukhara, a growing share of buyers think in “dual use”: enjoying the property for a few weeks a year, and renting it out the rest of the time via international platforms.
Nationally, vacation rentals are very competitive: they are on average 79% cheaper than hotels in the country, and 71% cheaper in a city like Bukhara. In other words, to attract visitors, renting an apartment or an entire house short-term is a winning formula: attractive price for the traveler, potential profit for the owner.
Bukhara, A Case Study for Performance Calibration
The detailed data available for Bukhara gives a concrete overview of what a secondary residence operated as a short-term rental can generate. On a sample of properties, median performance is around 233 dollars of monthly income, with a 16% occupancy rate and an average daily rate of about 45 dollars. At the other end of the spectrum, the top 10% of best-performing properties exceed 807 dollars of monthly income, with over 40% occupancy and prices beyond 106 dollars per night.
Average monthly income in dollars during the peak month (September) for this market.
This cyclicality requires careful management for secondary homeowners: dynamic pricing, targeting high-demand periods, and, possibly, diversification into longer stays outside the high season.
Property and Traveler Profiles
The data available on Bukhara allows us to understand the market structure of properties operated as short-term rentals. Most listings are small units: 60.4% have one bedroom, and one-to-two bedroom accommodations represent over 70% of the supply. The average capacity is 2.9 people, with a heavy concentration of properties hosting 2 to 3 travelers.
The clientele is 99% foreign, with a high proportion of young people (Gen Z and Alpha). The main languages are English (40%) and French (12%), making welcoming easier for French speakers. A key point for the investor: the average length of stay in Bukhara is 7 days, well above the national average of 2 days, thus optimizing the occupancy rate for well-located properties.
Legal Framework: What Foreigners Can (and Cannot) Do
For a foreign buyer wishing to establish a secondary residence in Uzbekistan, the first reality to grasp is that of land ownership: the land belongs to the State. One can own a building, an apartment, but not the land in the sense of classical property rights. The use of land is based on long-term leases (often up to 49 years, or even more depending on the type of project), granted by the authorities.
What the Law Permits
The legal framework is based on the Constitution, the Civil Code, the Investment Law, and the Land Law. In practice:
Foreign individuals and companies can acquire residential or commercial properties. They can own the buildings but generally hold only a usufruct right (land lease) on the land. For significant assets or long-term leases, foreign companies often need to create a local entity (like an LLC). Although there is no strict legal limit on the number of properties, local quotas or restrictions may apply in certain strategic or heritage areas.
Regarding secondary residences, a decisive element is the existence of minimum investment thresholds, which vary by region, when a foreigner buys in their own name. To have the right to acquire and, sometimes, obtain residency status, several tiers are used:
| Region / City | Typical Investment Threshold for Foreigners (USD) |
|---|---|
| Tashkent City & Region | 300,000 – 400,000 (depending on texts and periods) |
| Samarkand, Bukhara, Namangan, Andijan, Fergana, Khorezm | 200,000 |
| Karakalpakstan and Other Regions | 100,000 |
Some provisions foresee lower thresholds for off-plan purchases (pre-construction): for example, around 150,000 dollars in Tashkent/Samarkand for properties under construction, 70,000 dollars in other regions, with slightly higher amounts upon delivery.
Secondary Residence and Residency Permit
The acquisition of a secondary residence can also serve as a lever to obtain a residency permit. Several schemes coexist:
– A temporary residency permit based on a real estate investment exceeding minimum amounts (100,000 to 300,000 dollars depending on the region). These permits are typically valid for 3 to 5 years and renewable.
– More recent programs like “Golden Visa” or “residency by investment”, combining donations to public funds (starting at 250,000 dollars) and business or real estate investments.
These mechanisms change quickly, but the logic remains the same: the higher and more structured the financial commitment (construction of a hotel, a tourist residence, industrial investment), the greater the leeway regarding length of stay, taxation, and guarantees offered.
An Environment Still Complex
The reality on the ground sometimes remains distant from legal theory. The texts are numerous, often amended, and not always fully aligned with international standards. Several risks are identified:
– Rapid rule changes, sometimes retroactive.
– Heavy bureaucracy for land registrations, permits, and cadastres.
– Transparency problems, risk of corruption, judicial slowness.
– Difficulty in verifying old titles or complex land situations, especially on historic properties highly coveted for charming secondary residences.
In practice, for a foreign secondary home buyer, it is essential to go through a local lawyer, have titles verified with the unified property rights registry, clarify land lease rights, and ensure the property’s compliance in a protected or heritage zone.
Taxation, Financing, and Holding Costs
Owning a secondary residence in Uzbekistan implies mastering local taxation, transaction costs, and financing constraints, especially for non-residents.
Acquisition Costs
Purchase costs, in addition to the net price of the property, generally represent 3 to 6% of the transaction amount, including notably:
| Cost Item | Indicative Range |
|---|---|
| Registration Fees | 1 – 2 % of price |
| Notary Fees | 0.5 – 1 % |
| Lawyer Fees | 1,000 – 3,000 USD |
| Real Estate Agent Commission | 2 – 3 % (often paid by seller) |
| Translations & Legalization | 200 – 500 USD |
| Technical Inventory / Cadastre | 100 – 300 USD |
| VAT on new building (promo) | 15 % (often included in price) |
To this are potentially added renovation costs, particularly in the case of a secondary residence in an old or Soviet-era building. A complete overhaul is often estimated at 150 to 250 dollars per square meter depending on the quality of finishes.
Taxation During Ownership
For a private owner, recurrent taxation remains moderate:
Main taxes and duties applicable to individuals for the ownership and rental of real estate properties in Monaco.
Annual tax of approximately 0.2 to 0.35% of the cadastral value of the property, applicable to owners.
Flat rate of approximately 12% applied to rents received by individuals.
Taxed as income at a rate of 12%, with possible exemption after a minimum holding period for tax residents.
For a company, rates are higher: corporate income tax of around 15% and taxation of rental income around 20% for non-residents. But structuring through a company opens access to simplified regimes or exemptions in special economic zones, which may interest those considering a portfolio of secondary residences operated as hotel units.
Financing and Exchange Rate Risk
For foreigners, access to local credit remains limited, with often unattractive conditions: personal contributions of at least 30–50%, interest rates that can climb between 16 and 24%, and repayment terms sometimes less than 20 years. Some specific programs, led by local banks and the Ministry of Finance, offer mortgages for purchasing or constructing housing, but they target mainly citizens or residents.
Most foreign investors therefore prefer :
– Cash payment, financed by their own capital.
– A loan taken out in their home country, possibly in a hard currency.
– Payment facilities directly negotiated with developers, on construction projects.
Exchange rate risk is a major issue: the Uzbek soum is volatile against the dollar or euro, with episodes of marked depreciation (for example, about -10% in a recent year against the dollar). This can erode real returns in hard currency for a foreign owner, even if price increases in soums partially mitigate this phenomenon.
Tourism, Infrastructure, and the Ripple Effect on Secondary Residences
What makes the country particularly interesting for secondary residences is the convergence between ambitious tourism strategy and upscaling of infrastructure.
The government officially aims to double the number of foreign tourists in a few years, with targets exceeding 11 million international visitors in the short term, then 15 or even 20 million by 2030. In 2024, 10.2 million foreign tourists already generated 3.5 billion dollars in revenue, while domestic tourism represented nearly 23 million trips.
A Major Plan for Hotels and Accommodations
The authorities have set a very clear direction: build 4,000 new hotels, guesthouses, and hostels by 2030, including 1,560 by 2026. The goal is to increase the total number of rooms from just over 20,000 in 2018 to 64,000 in the short term. In parallel, a vast “Uzbekistan Heritage Hotels” program encourages the creation of boutique hotels in historic buildings, with tax and customs incentives for international groups.
The multiplication of accommodation types enriches the tourism ecosystem by strengthening international promotion, regularizing flows, improving connectivity, and forging an image of a safe and well-equipped destination. This particularly stimulates demand for seasonal rentals in historic districts and near heritage sites.
Roads, Airports, Tourist Clusters
The massive investments in roads — modernization of 4,000 km of major routes, creation of 800 km of toll highways, development of mountain roads — and in airports (expansion of Tashkent, modernization of Samarkand, Urgench, opening of new terminals) are redrawing the map of accessibility.
For secondary residences, the consequences are direct.
– Greater ease of access from abroad (more flights, routes to China, Russia, the Middle East, etc.).
– The emergence of new tourist areas (ski resorts like Amirsoy, beach projects around Charvak, archaeological circuits in Khorezm and Karakalpakstan).
– An increase in rental potential in regions previously under-exploited.
The planned tourist clusters — three initially, then five by 2030 — aim to concentrate activities, accommodations, and services in high-potential areas. Here again, secondary residences can fit into these ecosystems, either as individual rental properties, or as villas or houses integrated into hotel or vacation village projects.
Opportunities, Risks, and Investor Profiles
The secondary home market in Uzbekistan attracts varied profiles: retirees looking for an affordable pied-à-terre, diaspora families wanting a house in a heritage city, entrepreneurs transforming traditional houses into guesthouses, or even institutional investors betting on apartment complexes intended for seasonal rental.
The Most Obvious Opportunities
Several segments stand out as particularly promising:
Discover the main investment avenues in the Uzbek real estate market, offering attractive yields and growth prospects.
Residences in the historic centers of Samarkand and Bukhara, convertible into high-end guesthouses. Estimated tourist yields between 10 and 15% with capital appreciation prospects of 9 to 14% per year.
Well-located studios or 1–2 bedroom units, suitable for an international clientele and growing demand for medium-term stays, especially in districts near the metro or business hubs.
Houses or apartments in cities like Andijan, Fergana, Urgench or Chirchik. Low price per m² (300–550 dollars) with growing rents and potential linked to tourism or industry.
Structured investments benefiting from generous tax exemptions in special economic zones or targeted sectors like tourism or the electric industry.
The Main Risks to Gauge
The risks are not negligible and require a cautious approach:
Real estate investment in Uzbekistan presents several major risks to consider. Regulatory risk includes the possible evolution of rules, investment or residency thresholds, and a potential tightening of the short-term rental framework. Legal risk stems from a lack of transparency, land complexity, court slowness, and a possible bias in favor of local actors. Exchange rate risk is linked to soum volatility, affecting returns in hard currency. Remote management poses difficulties in supervising work, tracking rentals, and controlling a local operator. Finally, a bubble risk exists on certain segments, notably in Tashkent, fueled by spectacular price increases and the absence of alternative investments for local savings.
What Investor Profile for This Market?
The secondary home market in Uzbekistan primarily addresses investors:
– Capable of supporting a higher risk level than in an EU country, in exchange for potentially higher returns.
– Seeking geographic diversification, notably residents of neighboring countries (Russia, Turkey, Gulf countries, China) already very present, but also from Europe or North America.
Towards What Future for Secondary Residences in Uzbekistan?
All the puzzle pieces are gradually falling into place: sustained economic growth, tourism explosion, progressive liberalization of foreign investment, regular increases in real estate prices, strong cost-competitiveness compared to other heritage destinations. The secondary home market, still niche, could become a full-fledged pillar of the local real estate sector.
For a successful secondary home investment in Uzbekistan, the buyer should prioritize qualitative analysis rather than relying solely on gross yields. It is crucial to examine the quality of the asset (location, legal structure, building condition), the strength of the rental stream (seasonality, exposure to international tourism, type of clientele), and the stability of local regulations. A reasoned approach allows this purchase to be transformed into a structuring investment in a transitioning economy, valuing a unique cultural heritage, beyond mere exotic appeal.
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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.
