The Influx Of Russians And The Return Of Labor Migrants Are Driving Up The Price Of Real Estate In Uzbekistan

Uzbekistan, a nation with a welcoming environment and ease of access, has become a location for large numbers of Russians escaping unpredictability at home as a result of Moscow’s incursion of Ukraine.

And their entry, as well as their need for accommodation, has seen an instant impact on the value of property investment in Tashkent, the capital.

Rents in the 2.4 million-person city have soared once more after days or weeks of trouble because of the coronavirus flu epidemic, with real estate agents telling RFE/Uzbek RL’s Provider that renting prices have gone up by an estimate of 15% in recent weeks.

Including the ruble’s depreciation, the Uzbek exchange rate has fallen by almost 12% against the dollar over the last week, reaching 11,800 soms towards the us$ on March 17.

The dollar is rising,Nazarova explained, “but this, of course, is mirrored in [increased] housing prices.”

Another factor putting pressure on the property market is the comeback of several Uzbek migrants from Moscow who have been laid off as a result of the sanctions.

According to Nazarova, many Russians who come to Uzbekistan choose to invest in property, which was seen as more secure than varying currencies.

Since the incursion of Ukraine on Feb 24, an estimated 200,000 people have fled Russia, as restrictions have forced many businesses to close their gates and cut staff.

At least a few thousand Russians are thought to have moved to Uzbekistan, where ethnic Russians make up about 2% of the population. Official figures have yet to be published by the Uzbek Migration Agency.

Along with Kyrgyzstan, Kazakhstan, and Uzbekistan, as well as the cities of Yerevan, Tbilisi, Antalya, Istanbul, Dubai, and Helsinki, are popular Central Asian locations for escaping Russians. Those who are all places where Russians can still fly (many countries prohibit Russian planes from touching down or trying to fly over their land) or where Russian citizenship is acknowledged without a visa.

Money Safekeeping

According to an employee from one of Tashkent’s biggest housebuilders, the percentage of Russians intrigued by Uzbek property investment has increased significantly because the war began.