Monthly Blog- April 2024
Jasen Leith
If you need to travel then direct flights are the ideal, but there is a finite distance that we can travel on a single flight and so many of us are reliant on super transit hubs for connecting flights. The excitement of travelling to a country gets you through any flight but with a short transfer window the panic can quickly set in as you are required to gallop to the furthest gates (why is that?) and maybe a security check for good measure; too long a transfer period and the ‘’haul effect’’ as I call it takes hold as the journey seems to never end. I am not sure if there is any study that exists that defines the perfect Airport transfer time, but in my experience its between 2 and 4 hours.
After a rousing canter through the entire length of Istanbul airport terminal, I just make the gate and catch my onward flight that ends with an early morning arrival to my hotel. I am in Tashkent, Uzbekistan looking at the office and residential markets.
There is a degree of familiarity with Tashkent as I have visited several times before and I am looking forward to my time here. Ramadan has just finished, and Eid is in full swing, yet I have no problem getting to meet up with Landlords and Developers as I revisit the city commercial and residential sectors.
As mentioned from an earlier visit blog, Tashkent has an abundance of undeveloped land available within the city centre and fringe locations. This is partly due to the fact that the city is relatively low density and is spread out over a large area, a rebuilt city requirement following a devastating earthquake in 1966.
Tashkent City project is the largest single development project in Uzbekistan. It is a city centre site comprising 85 hectares and whilst it was a mere plan in 2019 it has moved onto becoming a landmark location with skyscrapers now puncturing the historically low rise city scape. The tower blocks offer modern office accommodation, luxury apartments and several hotel operators have now taken up residence. Retail is also accompanying the rapid development, as the city has clearly attracted outside interest from numerous international occupiers and retailers who are keen to be part of the country’s growth.
There is clearly a growth in office occupier demand with some 80 plus business centres operating or planning to be open in the next 6 months or so. These centres range from small-scale low-rise centres to the most notable new skyscraper additions of IT Park Uzbekistan completed in 2022 and Pirimat, a mixed-use scheme scheduled for completion mid 2024. Rents for prime offices around USD 40 – USD 45 per sqm and Class B space, by far the largest offering, is still holding strong at USD 25 – USD 35 per sqm per month.
Development of apartments is also quite aggressive. This was noticeable when I visited a former chancery site that we sold in 2019, which was redeveloped into a modern apartment complex. Demand for an apartment in the scheme was so popular that most of the apartments were sold off-plan, a testament to the scheme’s concept and design, its location being adjacent to a city park and a larger more affluent buyer pool looking to live in more modern, accommodation.
Modern apartments, the largest growing residential sector, have quoting sale prices ranging from USD 1,500 per sqm and upwards. In the case of single-family properties, a more dynamic sector now, prices are increasing and are starting at around USD 3,500 per sqm and upwards for the most luxurious properties, but most typically the price range for modern family homes properties in shell and core condition were between USD 1,500 – USD 1,700 per sqm.
