There is a severe shortage of warehouse space in Central Asia, with virtually no available space on the market: Stanislav Akhmedzhyanov, managing partner at IBC Global, estimates that the region is short of around 20 million square metres of modern warehousing facilities.
“If you need a high-quality, modern warehouse in Central Asia, it's almost impossible to find one,” Akhmezhanov said.
Countries such as Uzbekistan, Tajikistan and Kyrgyzstan are facing an acute warehousing shortage as most of their existing warehouses are fully contracted at class B. These countries mainly export agricultural products such as fruits and vegetables and therefore require modern warehousing facilities that meet quality standards.
Uzbekistan plans to add 60,000 square meters of warehouse space by the end of 2024, but it will not be enough to meet growing demand. Tajikistan, with just 10,000 square meters of quality space, faces an even more severe shortage. Kyrgyzstan plans to add 332,000 square meters, but that may still not be enough to meet its needs.
Demand for warehouse space in Central Asia far outstrips supply, driving up rents and leaving little room for new businesses.
Source: economist.kg
Issue date: Monday, August 26, 2024
