How to avoid risks when buying a new building in Tashkent: expert advice

The new construction market in Uzbekistan is showing rapid growth; however, this is accompanied by an increase in cases where buyers' expectations diverge from reality. Social media often features reports of construction suspensions or multiple postponements of completion dates.

Housing Market Dynamics

According to data from the Center for Economic Research and Reforms (CERR), approximately 295 thousand real estate sales were registered in the country in 2025, which is a 15% increase over the previous year. Tashkent is the center of this activity, accounting for nearly a third of all transactions nationwide. In March 2026, the market reached a new record, registering 43.6 thousand deals, double that of March 2025. This growth is partly linked to the abolition of the registration system in 2020.

Parallel to the increase in transactions, prices are rising: new buildings in Tashkent have increased by an average of 9% over the year, and in the Mirabad and Mirzo-Ulubek districts—by 17–18%. Rental costs in the capital have also risen by more than 9% year-on-year. Despite state efforts to strengthen control and increase market transparency, housing shortages persist, as there are only 73 housing units for every 100 families.

Market Problems and Trends

Despite regulatory changes, social media remains a platform for discussing primary market issues related to work quality and the fulfillment of obligations by developers. Delays in completion dates are a common problem, although participation agreements stipulate penalties, the size of which is often small—only 3–5% of the apartment cost, which reduces the developer's financial liability.

Andrey Sadykov notes that cases of complete non-completion are rare; more often, there is a significant increase in waiting times. On the other hand, the market is becoming more mature: large developers are emerging, and the residential complexes themselves are improving, offering developed infrastructure. However, competition forces developers to compete not only on price but also on quality.

Tips for Choosing Housing

Experts advise starting the selection process not with the floor plan, but with defining the purpose of the purchase (investment or personal use), assessing the actual budget, and the comfort level of monthly payments. The budget can be formed in three ways: full payment, installment plan from the developer (usually with a down payment of about 30% and repayment period of 18–30 months), or a mortgage.

Andrey Sadykov emphasizes that choosing the developer must precede choosing the district, as the location must match the buyer's financial capabilities. Andrey Kuznetsov points out that the manager sells the apartment, but the contract defines the buyer's rights.

Checking Developer Reliability

The first step in verification is studying the construction permit, which confirms the legality of attracting participants' funds. Nevertheless, formally flawless documents do not preclude delays. It is important to evaluate not only the company as a whole but also the specific residential complex. The best source of information is already completed projects by this developer: a personal inspection and communication with residents provide a fuller picture than promotional materials.

Warning signs may include peeling facades of neighboring buildings or a lack of visible progress at the construction site during regular visits. Furthermore, one should carefully study the project itself: transport accessibility, building density, and the ratio of apartments per floor to the number of elevators, as this affects living comfort.

Contract and Financial Analysis

When reviewing the participation agreement, buyers often focus only on price and area, ignoring legal details. Crucially important are the exact completion dates, the procedure and amount of penalty for delay (which should be around 5% of the property value), and the rules for recalculating the cost if the actual area changes. Andrey Sadykov warns that the most expensive signatures are often placed on supplementary agreements that the buyer has not had time to read, and signing such documents may deprive them of the right to claim a penalty.

Buying at the foundation stage allows you to get the lowest price and choose desired layouts, but it entails long waiting periods and an increased risk of delays. For investors, the developer's reputation is important, not just the initial price. Regarding financing, the developer's installment plan is usually cheaper in the end than a mortgage, although the latter offers longer terms. Andrey Kuznetsov believes that bank approval of a mortgage is a positive sign because it indicates a preliminary review of the project.

For an investor, the key factor for profitability is not so much the entry price as the actual completion timeline. A delay in object completion significantly reduces expected profit. Although territories of major state projects are considered promising in Tashkent, there is a risk of future competition that could lead to price reductions. Andrey Sadykov concludes that the main mistake of an investor is not overpaying, but making a mistake in assessing the developer's construction timelines.

podrobno.uzJune 30, 14:37

Business in Uzbekistan Complains About Untimely Payments and Lack of Transparency in Public Procurement

Entrepreneurs in Uzbekistan shared their problems arising from interaction with the state procurement system. During an open dialogue held on June 11 in Tashkent, 370 appeals were presented. Of these, 62 cases concerned financial losses, violation of suppliers' rights, and lack of transparency in procedures.

Analysis of Public Procurement Problems

At the first meeting of the Council of the Association of Participants of Public Procurement (AUPP), held on June 30, Marat Abidov, Deputy Chairman of the Council, presented the results of the analysis. According to him, most complaints are not related to ignorance of the rules or lack of participant training, but rather to the functioning of the system itself.

The Main Problem is Non-Payment of Contracts

The most critical problem voiced by entrepreneurs was the absence of timely payment for already completed state contracts. Suppliers who have fulfilled all obligations and delivered products often face situations where the state customer either refuses to pay or postpones payment indefinitely.

Marat Abidov cited an example where an entrepreneur fully executed a contract worth about 100 million soms but never received payment. He emphasized that this leads to direct financial damage to businesses and reduces the motivation of entrepreneurs to participate in public procurement.

The situation is particularly difficult for small and medium-sized businesses, as enterprises incur costs for raw materials, salaries, and logistics, and the lack of income puts them on the verge of ceasing operations.

Issues of Transparency and Competition

The second significant area of complaints was the lack of transparency in tenders and issues of fair competition. Many participants believe that the winner is determined before the official announcement of the procurement. Entrepreneurs point out that customers sometimes formulate technical requirements in such a way that only one pre-known company can meet them.

Furthermore, after submitting applications, the commission, according to market participants, draws up review protocols in a way that rejects the proposals of other participants for formal reasons. Abidov noted that such questionable protocols and artificially inflated requirements objectively limit competition, which risks the state purchasing goods at inflated prices.

Proposals for System Improvement

Both groups of problems indicate a general need to improve control mechanisms in the field of public procurement. Business insists not so much on changing the rules as on their uniform application to all market participants.

To solve the non-payment issue, it is proposed to consider such cases on a priority basis and implement a system that eliminates the possibility of unpunished delays in payments by customers. Regarding tenders, Abidov suggested conducting selective checks of procurements and analyzing protocols for artificial limitations on competition.

Importance of Business Trust

Despite the government implementing training programs and developing support measures for industry, discussion participants believe that these initiatives will not yield the desired effect without trust from entrepreneurs. Jakhongir Yunusov, Deputy Director of the Agency for Industrial Cooperation and Public Procurement, emphasized the need not only for support but also for the effective use of state funds.

In conclusion, Marat Abidov proposed holding such open dialogues between the state and business no less than twice a month, and also distributing all 62 appeals into thematic groups with assigned responsible executors to move from discussion to practical problem-solving.