Affordable housing and new opportunities for the population
Tashkent, Uzbekistan (UzDaily.com) - In Uzbekistan, over the past 4 years, under the state program, 140 thousand housing units were built, which is 2 times more than the number of residential buildings built over the past 10 years.
However, it is no secret that the population’s annual demand for affordable housing remains high. In this regard, additional measures to provide the population with housing through mortgage loans based on market principles envisage providing housing for all segments of the population and expanding their choice in this regard. In particular, this year it is planned to provide 45 thousand families with affordable housing. 33 thousand of planned new houses out of 45 thousand in 2021 will be built by entrepreneurs under the state mortgage program.
Experience shows that affordable housing is one of the best ways to stimulate entrepreneurship and economic growth. Affordable housing offers the opportunity to stimulate capital for business investment through mortgages and savings from households. In addition, affordable housing close to central areas offers the opportunity to live in close proximity to communities and communities of great opportunity.
It is no secret that in many countries the most constraining factor for the internal mobility of the population within the country is the cost of housing. A study by the World Bank expert W. Seitz in 2018 shows that 28% of the total household consumption in urban areas accounted for rental housing, and for rural areas it reached 30%.
Such a consumption structure does not directly imply serious financial difficulties among the population. However, the diversity of forms of well-being of households that live in both urban and rural areas by obtaining affordable housing would allow them to achieve a higher standard of living, including opening a new business, increasing demand for goods and services, and other aspects, since a significant share of their expenses is higher. would not be spent on housing.
Thus, the pace of urbanization is expected to accelerate due to the increase in affordable housing under the envisaged program, which in turn implies an improvement in business activity, demand, and the quality of life of people in general.
The most prosperous cities in Uzbekistan must be open to the best and most talented. Housing costs should never be a barrier to living, finding a good job, or starting a business. That is why, over the past few years, the country has been paying special attention to improving the affordability of housing for all segments of the population.
The measures taken in this direction will not only provide the population with safe and modern housing, but will also serve to further develop the mortgage lending market and create favorable conditions for doing business in the republic.
Leading Researcher of CERR