Uzbekistan Introduces Integrated Housing Development Model

Uzbekistan has introduced a comprehensive reform aimed at transforming the development of multi-apartment residential buildings by introducing integrated construction mechanisms, enhanced transparency, and stronger protection of property owners’ rights.

The reform seeks to accelerate housing development, improve urban planning, and ensure that residential construction is aligned with broader urbanization, infrastructure, and environmental objectives.

The new framework introduces a coordinated model for residential development, supported by investment companies, digital urbanization platforms, and updated regulatory mechanisms governing construction and housing markets.

Integrated Construction as the New Development Model

 

A key element of the reform is the introduction of integrated construction projects, which move away from fragmented housing development toward a coordinated urban planning approach.

Under this model:

  • development areas are planned through detailed master plans;
  • territories are divided into investment lots;
  • engineering infrastructure, residential buildings, and public spaces are designed as part of a single development concept.

To test this new model, the government has introduced an experimental regulatory sandbox regime, allowing integrated housing projects to be implemented in designated territories over a defined period.

Construction of multi-apartment housing in these areas must comply with the new integrated development procedures, which replace traditional fragmented development models.

Investment Companies as Key Project Coordinators

 

The reform establishes specialized investment companies responsible for coordinating integrated development projects.

These companies serve as an operational bridge between:

  • developers and investors,
  • government agencies,
  • local authorities,
  • property owners.

Their responsibilities include:

  • preparing master plans for development territories;
  • organizing the preparation of primary permits and design documentation;
  • determining the starting price for development lots;
  • placing development lots for electronic auction;
  • coordinating infrastructure construction and engineering networks;
  • supervising project implementation by developers.

Investment companies also maintain coordination with regional authorities and urban planning bodies to ensure compliance with national development policies.

Protection of Property Owners in Redevelopment Areas

 

The new system introduces safeguards aimed at protecting the rights of property owners in redevelopment zones.

Integrated construction projects may proceed only after notarized settlement agreements have been concluded with at least 80% of property owners located within the redevelopment territory.

If agreements cannot be reached with remaining owners regarding compensation terms, investment companies may apply to the courts to determine compensation based on the average market value established through concluded agreements with other property owners.

This mechanism aims to balance urban redevelopment needs with the protection of private property rights.

Creation of a National “Land Bank” for Housing Development

 

To improve long-term planning of residential construction, the reform introduces the concept of a “Land Bank” for housing development.

This system will include land plots identified for future multi-apartment housing construction and categorized according to their legal and urban planning status, including:

  • vacant state-owned land plots;
  • land with state-owned facilities subject to privatization;
  • privately owned land plots eligible for redevelopment;
  • designated renovation zones;
  • land whose category may be changed for development purposes.

The Land Bank will ensure that housing development projects are pre-approved from an urban planning and infrastructure perspective before construction begins.

Digitalization of Urban Planning and Construction Processes

 

A major element of the reform is the creation of a Unified Digital Urbanization Platform (“Uy-joy”).

This platform will integrate data related to:

  • urban planning documentation;
  • construction permits;
  • land allocation;
  • financing and construction progress;
  • property transactions;
  • infrastructure development.

Through inter-agency integration, the platform will allow authorities to track the entire lifecycle of housing projects, from land allocation to construction completion and property registration.

Beginning in 2027, permits for construction works in multi-apartment buildings will be issued automatically through digital integration between government systems.

Transparency and Control in the Construction Sector

 

To strengthen oversight in the housing sector, the reform also introduces mechanisms aimed at increasing transparency.

Among these measures is the creation of a Unified Public Register of Unauthorized Multi-Apartment Buildings, which will be maintained within the national “Transparent Construction” information system.

This register will allow authorities to monitor illegal construction and take enforcement measures where necessary.

At the same time, the National Committee for Sustainable Urbanization and Housing Market Development will conduct systematic monitoring of compliance with urban planning regulations and may issue binding instructions to suspend construction activities if violations are detected.

Environmental and Urban Sustainability Measures

 

The reform also incorporates environmental considerations into urban development.

Investment companies are required to prioritize the creation of:

  • green parks,
  • eco-parks,
  • urban alleys and landscaped public spaces.

To support these initiatives, local budgets will allocate a portion of revenues generated from the sale of state property within development areas to the expansion of green infrastructure.

Strategic Implications for the Housing Market

 

The reform represents a significant shift in Uzbekistan’s housing policy, aiming to modernize the residential construction sector and align it with international urban development practices.

Key expected outcomes include:

  • accelerated housing construction;
  • improved urban planning coordination;
  • greater transparency in the construction sector;
  • stronger protection of property owners’ rights;
  • increased attractiveness of housing projects for investors.

In the long term, the new integrated development model is expected to reshape Uzbekistan’s residential real estate market and support sustainable urbanization across the country.