Construction Loans in Uzbekistan Surge 46 Percent Amid Housing Market Cooling

Tashkent, Uzbekistan (UzDaily.uz) — The outstanding balance of loans issued to the construction sector of Uzbekistan grew by 46% during 2025, representing the fastest growth rate among the sectors of the corporate credit portfolio of banks, according to the financial stability review published by the Central Bank.

This acceleration occurred in a year when market prices for housing decreased by 4.8%, and buyers, according to the Central Bank's own assessment, shifted from expecting real estate value growth to making investments for rental income.

The industrial sector moved in the opposite direction. The outstanding balance of loans to industry, which holds the largest share in the corporate portfolio, contracted by 7% over the year to 143 trillion soums. The ratio of industrial loans to GDP stood at 8%.

Total lending to legal entities grew moderately, with the portfolio gaining 8% to reach 383.7 trillion soums as of 1 January 2026. The regulator attributed the slowdown to the foreign currency component. Due to the strengthening of the soum, the outstanding balance of foreign currency loans in soum equivalent grew by only 4% to 236.8 trillion soums, although their volume in US dollar terms increased by 11%. Loans to companies in the national currency grew by 16% to 146.9 trillion soums. The weighted average rate on foreign currency loans to legal entities remained around 10%.

The ratio of corporate loans to GDP stood at 21% and remains below the long-term trend, indicating that the Central Bank sees no signs of overheating in the corporate segment. The financial condition of companies strengthened according to the regulator's assessment. The profitability of the analyzed enterprises rose and the probability of default decreased, which was also aided by the strengthening of the soum that reduced the foreign currency risks of borrowers.

The outperforming growth of lending to developers amid cooling housing prices was not commented on separately in the review. However, the regulator noted that the return of prices to fundamental levels was facilitated, among other things, by an increase in supply from new construction, and it assessed the impact of a potential drop in housing prices on bank losses from mortgages as very limited.