Uzbekistan’s mortgage lending market is shrinking, the Central Bank said in a report. A total of 6.88 trillion soums worth of mortgages were provided in January-June 2024, which is by 124.5 billion soums, or by 1.77% less than last year in the first half of last year.
The number of mortgage loan recipients also decreased - from 31,699 to 26,201. While, the average loan amount increased from 221 million to 262.7 million soums, or by 18.9%.
Banks began to provide more mortgage loans at their own expense - an increase from 2.03 trillion to 2.36 trillion soums, but the volumes provided under the state program decreased (from 3.89 trillion to 3.67 trillion soums) and at the expense of the Company for mortgage refinancing (from 1.09 trillion to 847.1 billion soums).
The mortgage interest rate under the state program did not change - 17.9%, but banks increased the rates for their loans from 24.3% to 25.1%.
It is noteworthy that the number of mortgage loans among middle-aged people (31-50 years old) and older people (over 50 years old), as well as women (their share decreased from 36% to 35%) has sharply decreased.
The volume of mortgages for the purchase of housing in a new building decreased from 3.99 trillion to 3.87 trillion soums, and for secondary housing increased slightly - by 2.7 billion soums.
Earlier, the Center for Economic Research and Reform reported that year-to-date, sales in the real estate market fell by 5.7%. The rise in prices for secondary housing has slowed down; in Tashkent its cost has dropped to $1,142 per sq. m. m. Rent in the capital continues to fall in price.
