Tashkent, Uzbekistan (UzDaily.com) -- The pace of real estate sales still began to slow down, and the main factor that influenced purchasing activity in July was the worsening situation with the pandemic.

The Center for Economic Research and Reforms (CERR) regularly analyzes changes in demand in the real estate market in Uzbekistan.

In July 2021, 18,100 real estate contracts were concluded in Uzbekistan, which is 12.5% more compared to the corresponding period of 2020 (16,100). At the same time, compared to June this year, the number of contracts for the purchase and sale of real estate decreased by 16%.

However, it is not very correct to compare this July with last year’s, since a lockdown was still in effect in July 2020.

The main reasons for the decrease in the number of transactions in the real estate market are the deterioration of the epidemiological situation, due to which potential buyers are afraid to enter into a transaction, considering it unprofitable in the current market conditions.

It should be noted that quarantine restrictions are still in effect throughout the country, which also continue to put pressure on the economy. This is also mentioned in a parallel study by CERR, in particular, 17% of small and medium-sized businesses noted the negative impact of the pandemic on the demand for goods / services.

Among other factors that caused a significant drop in demand in the real estate market is a decrease in the number of mortgage loans issued to the population.

So, according to the data of the Central Bank of the Republic of Uzbekistan, the number of mortgage loans in July of this year. decreased by 4.3% compared to the corresponding period in 2020. Whereas in June the decline was 53%.

In just 7 months of 2021, mortgage loans were issued by 19.2% less than in the same period of last year.

As for the regions, compared with June of this year, a decrease in demand is observed in all regions. The largest decline was recorded in Bukhara (27.3%), Namangan (22.1%), Kashkadarya (20.7%), Navoi (18.1%), Samarkand (17.8%) regions.

At the same time, the number of mortgage loans issued in July 2021 compared to the same period last year significantly decreased in Kashkadarya (60.1%), Bukhara (40.3%), Jizzakh (39.9%), Syrdarya (34.1 %), Surkhandarya (29%) regions.

An increase in demand in the real estate market can be expected by the fall, when the holiday season ends and the active business season begins. Also, the recovery of demand will be facilitated by the conduct of mass vaccinations.