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The shortage of warehouse space is causing significant concern in Central Asia

Central Asia is experiencing a significant shortage of warehouse space, with virtually no available capacity in the market. Stanislav Akhmedzyanov, Managing Partner at IBC Global, estimates that the region lacks around 20 million square meters of modern warehouse facilities.

"If you need a high-quality, modern warehouse in Central Asia, it's nearly impossible to find one," said Akhmedzyanov.

Countries like Uzbekistan, Tajikistan, and Kyrgyzstan face an acute shortage, with most existing warehouses being B-class and fully contracted. Since these countries primarily export agricultural products, including fruits and vegetables, they need modern warehouse facilities to meet quality standards.

Although Uzbekistan plans to add 60,000 square meters of warehouse space by the end of 2024, it won't be enough to meet the growing demand. Tajikistan, with only 10,000 square meters of quality space, faces an even greater shortage. Kyrgyzstan is expected to add 332,000 square meters, but this may still fall short of what's needed.

The demand for warehouse space in Central Asia far exceeds the supply, driving up rental rates and leaving little room for new businesses.

Source: economist.kg

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