The Ministry of Justice of Uzbekistan has acknowledged the probability of rising housing costs following the introduction of the escrow account system. It is also emphasized that this new mechanism is intended to protect homebuyers' funds from risks associated with problematic construction projects.
Yamshid Mirzaev, head of the Department of Economic Legislative Policy at the Ministry of Justice, stated this during a meeting of the parliamentary faction of the People's Democratic Party of Uzbekistan. In response to a question by deputy Anvarxon Temirov about the impact of financing construction through authorized banks on housing construction costs, Mirzaev reported that this issue was studied by four research organizations, whose findings indicate a high probability of increased construction expenses.
According to the representative of the Ministry of Justice, developers currently use homebuyers' funds directly, which effectively receive interest-free financing. After the introduction of escrow accounts, buyers' money will be frozen in banks until the developers fulfill their obligations. To finance construction, developers will have to take out bank loans, which will require paying interest.
Mirzaev noted: 'Yes, housing prices will rise in the future, but if citizens do not receive their apartments, they can easily contact the bank and retrieve their money.'
The main goal of introducing the escrow account mechanism is to protect citizens' funds. According to this proposal, all payments from buyers, including mortgage loans and subsidies, will be placed in special accounts at authorized banks. Developers will only be able to access these funds after certain conditions are met.
On July 11, the Committee of the Legislative Chamber on Entrepreneurship issues preliminarily reviewed the draft law on joint participation in construction. This document aims to regulate relations between developers and homebuyers, as well as strengthen the protection of buyers' rights.
The need for such changes is partly due to the growing scale of joint participation in construction and the increase in problematic projects. Data presented during discussions on urbanization and urban planning reforms showed that the volume of apartment construction using buyers' funds has increased by 2.5 times in recent years, exceeding 11 million square meters in 2025.
Simultaneously, the number of violations has also increased. In 2025 alone, problems with the implementation of construction projects affected nearly 3000 citizens, causing damage totaling 668 billion soms.
In addition to escrow accounts, the draft law provides for the creation of a unified digital platform called Uy-joy. This platform is designed to host information on developers, permitting documentation, construction projects, progress of work, escrow accounts, and joint participation agreements. Furthermore, the authorities intend to create a unified digital system for monitoring construction sites using unique identifiers and digital object passports, which will allow tracking projects throughout the entire construction cycle.
According to the National Statistical Committee, housing prices in Uzbekistan showed a 4% increase compared to the same period last year. Additionally, in the fourth quarter of 2026, prices increased by 1.3% relative to the previous quarter.
Over the past twelve months, the cost of apartments has grown by 5.5%. The most significant increase was recorded in the primary market, where prices rose by 7.1%, while the secondary market saw growth at a rate of 4.2%.
As for individual residential houses, their prices increased by 2% year-on-year. In the capital, Tashkent, apartment prices rose by 3.9% over the last year, whereas the average growth across the rest of the country reached 7%.
The National Statistical Committee also reported that starting from the second quarter of 2026, housing price indices are calculated using an updated methodology. This methodology is based on hedonic regression and allows for a more accurate assessment of market trends by taking into account property characteristics such as area, location, number of floors, and other housing parameters.
