Uzbek Lawmakers Review Shared Construction Bill

Tashkent, Uzbekistan (UzDaily.uz) — The Committee on Entrepreneurship, Competition Development and Industry of the Legislative Chamber of Uzbekistan's Oliy Majlis has held a preliminary review of a draft law on the construction of apartment buildings and other real estate projects based on shared-equity participation.

The bill is intended to regulate relations between developers and participants in shared-equity construction projects while strengthening protections for homebuyers.

According to the Legislative Chamber's press service, the volume of construction work in Uzbekistan has increased 17.5-fold in recent years. Alongside the sector's expansion, systemic problems have become more pronounced, including some developers' failure to meet construction deadlines, inadequate protection of buyers' interests under shared-equity agreements and delays in commissioning residential buildings.

Lawmakers also noted that the growing number of developers lacking sufficient experience has led to an increase in problematic construction projects. At the same time, shared-equity construction is still not governed by a separate law, creating additional risks for homebuyers.

The draft law provides a legal framework for attracting funds from individuals and legal entities for the construction of apartment buildings and other real estate projects. It also aims to improve the existing shared-equity construction mechanism and establish safeguards for the rights, legitimate interests and financial resources of project participants.

During the discussion, lawmakers questioned the bill's authors on several provisions and proposed amendments. The draft is currently being reviewed with industry specialists and is being prepared for submission to the Legislative Chamber.

Earlier, on 10 June, during a presentation on proposals to improve the effectiveness of urbanisation and urban planning reforms, officials said the volume of apartment construction financed through shared-equity participation had increased 2.5 times in recent years, exceeding 11 million square metres in 2025.

At the same time, the number of violations in the sector has risen. According to figures presented at the meeting, nearly 3,000 people suffered losses from problematic construction projects last year, with total damages amounting to 668 billion soums.

One of the key provisions of the proposed law is the introduction of an escrow account mechanism. Under the proposal, buyers' funds would be held in special accounts at authorised banks and transferred to developers only after contractual obligations have been fulfilled. If a contract is terminated, buyers would receive a full refund of the amount paid.

The bill also provides for the creation of a unified digital platform, Uy-joy, containing information on developers, permits, construction projects, project progress, escrow accounts and shared-equity agreements.

In addition, a unified digital system for managing construction projects is planned, using unique identifiers and digital passports for buildings to enable monitoring throughout the entire construction lifecycle.