Over 33.6 thousand real estate and vehicle transactions registered via escrow accounts in Uzbekistan in October

Against the backdrop of several incidents involving construction companies, including cases of housing delivery delays, non-return of funds to buyers, and criminal cases against developer management, the National Committee on Urbanization has called for accelerating the implementation of the escrow account system.

This system is designed to guarantee the safety of funds invested by citizens in apartment construction. Representatives of the agency emphasized the inadmissibility of a situation where people who have invested money in purchasing housing are left without the promised apartments or the ability to receive a refund of their funds.

To minimize such risks, a draft law 'On participatory construction of apartment buildings and other real estate objects' is currently being considered in the Legislative Chamber of the Oliy Majlis, which provides for the introduction of escrow accounts.

It was planned that this mechanism would be introduced in 2025. According to the presidential decree, starting from January 1, 2026, all payments from participants should exclusively pass through escrow accounts; however, this requirement did not come into effect because its implementation required the adoption of a corresponding legislative act. In July 2026, the Legislative Chamber adopted this bill in its first reading.

The proposed mechanism involves placing buyers' money in specialized bank accounts, and the transfer of these funds to the developer will only occur after certain conditions have been met. This should help reduce the probability of fraud and misuse of citizens' funds.

Furthermore, the system allows for the involvement of another developer if serious difficulties arise in implementing the project. Thus, even if the first construction company cannot fulfill its obligations, there will be a way to complete the construction.

The Committee believes that the foundations of housing construction must be built on the protection of buyers' funds, the fulfillment of obligations by developers, and ensuring transparency for all market participants. The introduction of escrow accounts, according to the agency, is a critically important step to prevent crises and restore public trust in the housing market.

From January to September 2026, Uzbekistan completed the construction of 67,859 apartments, representing an 88.8% increase compared to the same period last year. During these first nine months, 67,598 citizens received mortgage loans totaling 20.9 trillion soums.

This data was presented during a briefing by Ravshana Umarova, press secretary of the Minister of Economy and Finance and advisor on information policy. In the Yangi Uzbekistan residential areas, 13,408 apartments were commissioned during the reporting period. The state budget allocated 677.1 billion soums for the development of engineering and utility infrastructure in these areas.

For 2026, Uzbekistan plans to build 140,206 apartments nationwide. Construction of 67,859 units was completed by October 1st. Additionally, another 10,045 housing units were handed over under urban reconstruction programs. As of October 1st, the population of Uzbekistan reached 39.5 million people, according to census results. The urban population share was 54.5%, with 21.3 million people living in cities. The Uzbekistan-2030 strategy aims to increase the urban population share to 60%.

The comprehensive program for developing the Yangi Uzbekistan residential areas has been implemented since 2021 and covers not only housing construction but also transport, engineering, and social infrastructure. Between 2022 and 2025, 55,264 apartments were built and commissioned in these areas. For 2026, an additional 33,926 apartments are planned for construction in 61 residential areas. By October 1st, 13,408 apartments were completed, accounting for about 40% of the annual target.

The state budget allocated 1.1523 trillion soums for engineering and utility infrastructure in these residential areas in 2026. By October 1st, 677.1 billion soums had been utilized. These funds are directed towards road construction and the development of water supply, sewerage, heating, and electricity networks.

Mortgage lending is another key aspect of the government's housing policy. A total volume of mortgage loans amounting to 23 trillion soums is planned for 2026. Of this amount, 12.2 trillion soums must come from the state budget, 7.8 trillion soums from commercial banks' own funds, and 3 trillion soums from the Uzbekistan Mortgage Refinancing Company.

As of October 1st, citizens received 20.9 trillion soums in mortgage loans, meeting 91% of the annual target. Compared to January-September 2025, mortgage lending increased by 39%, or 5.9 trillion soums. The total amount issued during this period included 12.8 trillion soums from the state budget, 6.1 trillion soums from commercial banks, and 2 trillion soums from the mortgage refinancing company.

Over the nine-month period, the state budget paid out 1.2081 trillion soums in mortgage subsidies. Of this amount, 407.8 billion soums went to initial payments for 13,722 citizens, and another 800.3 billion soums covered interest payments.

Under the reconstruction program, Uzbekistan intends to hand over 30,000 apartments in 2026 and 35,000 in 2027. These targets were set by Presidential Decree No. UP-29 dated February 24, 2026. The government also plans to gradually increase the share of apartments built under reconstruction programs to 60% of the total multi-apartment construction by 2040.

The legal framework for updating outdated housing stock was established by the Urban Reconstruction Law, adopted on June 10, 2026. This law provides mechanisms for protecting owners' rights, efficient use of land resources, and financing urban development projects.

In the first nine months, the Uzbekistan Mortgage Refinancing Company refinanced previously issued mortgage loans totaling 2.2731 trillion soums, covering approximately 9,000 citizens. The company also provided 221.2 billion soums in mortgage loans for the ecological modernization of 1,594 houses. The company attracted 685.6 billion soums from the European Bank for Reconstruction and Development and 1.3 trillion soums from the domestic capital market. By 2030, the company plans to increase its authorized capital to 5 trillion soums and expand its share in the mortgage lending market to 20%.