Question 1

What is the real return on real estate in Tashkent?

Accepted Answer

Rental in Tashkent yields a gross return of 4–7% in dollars per year. With price appreciation (5–12% per year), total return is 10–18% annually. However, maintenance costs, taxes, and vacancies reduce the net result by 1–3% per year.

Question 2

What are gross and net rental yields?

Accepted Answer

Gross = (annual rent / property price) × 100. Net = (annual rent − maintenance costs) / price × 100. The difference covers taxes, repairs, property management, insurance, and vacancy periods. A realistic net yield is 1–3% below gross.

Question 3

Is it better to buy an apartment or put money in a deposit?

Accepted Answer

At 20% UZS deposit rate and 10% inflation, real deposit return is about 9%. Real estate with 6% rental + 8% price growth yields 14% nominally. The calculator compares both scenarios on the same horizon.

Question 4

How to account for a mortgage when evaluating an investment?

Accepted Answer

A mortgage provides leverage: you control an asset worth 500M by investing 150M. At 10% price growth, your capital grows 33% relative to the invested amount. But mortgage interest increases costs — the calculator accounts for overpayment.

Question 5

What maintenance cost percentage to set?

Accepted Answer

The international benchmark is 1–2% of price per year for repairs and maintenance. In Uzbekistan add property tax (~0.2–0.4%), property management (8–10% of rent if applicable), insurance. Total realistic range: 1.5–3% per year.

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