Uzbekistan Accelerates Development of Warehouse Infrastructure

Over the past six months, 350,000 sq. m of new warehouse space has been commissioned in the CIS market, accounting for 86% of the total supply. According to a study by NF Group analysts, the main regions of growth were Kazakhstan and Uzbekistan. Kazakhstan provided 62% of the new supply, while Uzbekistan contributed 27%. By the end of Q1 2025, the total warehouse stock in Central Asia, the South Caucasus, and Belarus reached 4.7 million sq. m, showing a 15% year-on-year increase. The market shows stark contrasts: Uzbekistan entered the top three largest players for the first time, overtaking Azerbaijan. The leading positions are now held by Kazakhstan (1.75 million sq. m), Belarus (1.72 million sq. m), and Uzbekistan (0.5 million sq. m). Active construction in Kazakhstan and Uzbekistan has led to a temporary increase in vacancy rates — 6.6% and 4.0%, respectively. Meanwhile, vacancy is decreasing in the South Caucasus: in Georgia down to 1.1%, and in Armenia to 0.5%, while Belarus, Kyrgyzstan, and Tajikistan have had no vacant space for over a year. Average rental rates for class A facilities in Central Asia remain the highest in the region, reaching $139 per sq. m per year. In Kazakhstan, prices have stabilized at 5,250 tenge per sq. m per month, returning to 2023 levels. In contrast, Uzbekistan has seen a 9% decrease in dollar-denominated class A rates, while class B rates have risen by 12%. "The market is developing at different speeds," commented Konstantin Fomichenko, a partner at NF Group. "In Kazakhstan and Uzbekistan, supply growth is temporarily increasing vacancy, but it is laying the foundation for balanced logistics. At the same time, a lack of space in Belarus and the South Caucasus is putting upward pressure on rates. Even with 2 million sq. m planned for delivery by 2026, demand will still outpace supply in several countries." By the end of 2025, 1.4 million sq. m of new warehouse space is expected to be commissioned in the region. Most of this is being built for specific tenants. Kazakhstan will remain the leader with a projected 650,000 sq. m, followed by Uzbekistan (100,000 sq. m) and Georgia (105,000 sq. m). Analysts forecast market activity to pick up in Belarus, along with significant growth in warehouse capacity in Kyrgyzstan and Tajikistan, where current volumes remain extremely low. Thus, the CIS warehouse real estate market continues to balance between infrastructure growth and a shortage of quality space. While some countries are expanding their logistics capabilities, others face rising rental rates. Notably, Uzbekistan is showing rapid growth in this segment: between late 2023 and Q1 2025, the country’s warehouse stock increased by 2.65 times — to 0.5 million sq. m.