Uzbekistan has emerged as the top spot in Central Asia and Transcaucasia for high-quality warehouse real estate development, outperforming its regional competitors. In 2024, the country saw a stunning 165 per cent increase in warehouse capacity, bringing the total high-quality warehouse area to more than 500,000 sq mt. This boom was fuelled by significant projects such as the Grand Pharm logistics centre in Tashkent's Pharmaceutical Park, developments in the Yangiyul neighbourhood and the Balton Trading Asia warehouse complex.
While Uzbekistan's growth is outstanding, experts believe the country is still in the early stages of developing a comprehensive logistics infrastructure. Despite its rapid development, the country still requires an additional 2.3-2.4 million sq mts of warehouse space to match its northern neighbours' logistics capability. The country's per capita warehouse space remains minimal, at 0.01 sq mt per person.
International and domestic firms, notably e-commerce giants including Russia's Wildberries and local marketplace Uzum Market, are fuelling the demand for warehouse space. The Uzbek government has prioritised logistics infrastructure, which aligns with bigger projects, including the Belt and Road Initiative. However, challenges persist, including a scarcity of sophisticated technologies and experienced workers, high rental prices, and a concentration of warehouses in the Tashkent region.
Despite these challenges, experts believe Uzbekistan must continue investing and implementing large-scale reforms to close the gap with more established logistics economies in Eurasia.
