Uzbekistan Plans to Establish a Real Estate Development Institute Modelled on Russia’s DOM.RF

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan may establish a structure similar to Russia’s state development institution DOM.RF following the completion of reforms to sector-specific real estate legislation, Interfax reports.

According to Alexey Boldin, an international real estate and development expert and co-founder of ASSALOM ESTATE and SUMMIT UNITED, the new institution would be endowed with “incomparable powers.”

He noted that the formalisation of such an institute is most likely to take place after work is completed on legislation regulating the escrow mechanism.

The escrow mechanism in Uzbekistan is being developed to streamline the housing market and protect the interests of shared-equity buyers.

Denis Sokolov, CEO of Commonwealth Partnership Uzbekistan, previously stated that the relevant legislative framework is likely to be ready by mid-year.

Boldin pointed out that project financing using escrow accounts in Uzbekistan differs significantly from the Russian model. In particular, the rights of homebuyers are regulated not by consumer protection law but by separate sector-specific legislation, while a nationwide mortgage lending scheme at the construction stage is currently absent.

“It is important to make housing affordable, and to achieve this, mortgages must be extended to the construction phase. If that happens, the market will grow severalfold,” the expert stressed.

Earlier reports noted that DOM.RF is prepared to use its accumulated experience not only to improve living standards in Russia, but also to transfer knowledge and best practices to other countries, including Uzbekistan.