Sunday, 14, June, 2026

The Senate today passed the Urban Renovation Bill, a landmark initiative designed to modernize the country's housing stock, optimize land use, and establish a transparent framework for redevelopment projects.

According to the Senate, the bill addresses several systemic challenges, ranging from acute housing shortages to the deterioration of aging structures. Official estimates indicate an annual demand for 140,000 to 150,000 new apartments, requiring approximately 2,000 hectares of land each year.

The bill defines urban renovation as a holistic suite of measures aimed at the architectural, social, economic, and environmental revitalization of urban spaces. This includes upgrading buildings to meet modern standards of habitability and energy efficiency, as well as the strategic reconfiguration of land plots.

Senator Erkin Gadoyev highlighted the scale of the challenge: of Uzbekistan's 42,000 apartment buildings (encompassing 1.4 million units), roughly 74% were constructed before 1991. He noted that the previous lack of a unified legal framework led to several critical friction points:

Under the new mandate, the government aims to deliver 20,000 renovated apartments in 2025, scaling up to 30,000 in 2026.

The senator highlighted a transformative shift in urban density: by replacing 17,000 low-rise buildings (2–3 stories, totaling roughly 255,000 apartments) with modern 7–9-story complexes integrated with infrastructure and green zones, the country could deliver up to 900,000 apartments—a 3.5-fold increase. This strategic intensification is projected to save approximately 20,000 hectares of land while providing modern housing for up to 4.5 million people.

The bill introduces a collaborative equity model involving the state, private investors, and property owners. The government will participate through a dedicated Renovation Fund, contributing capital equivalent to the value of state-owned land or assets involved in a project. Furthermore, national and regional funds will be established to subsidize the renewal of derelict housing in remote or commercially less attractive areas that typically struggle to draw private investment.

To streamline execution, the bill standardizes compensation formats for owners and introduces tax incentives. Should a funding gap arise, the bill permits the integration of third-party capital through designated investment programs. Crucially, the bill codifies specific, ironclad guarantees for homeowners throughout the process.

The bill establishes ironclad guarantees for homeowners.

Renovation projects will proceed strictly on a voluntary basis: initiating a project requires the notarized consent of at least 80% of owners, while full implementation is contingent upon individual agreements with every single proprietor. Demolition and construction are strictly prohibited until 100% of all compensation issues have been resolved.

Residents are guaranteed a choice in how they are compensated—be it a new residence (either within the same district or in a different location), non-residential space, or a direct cash payout. Critically, the square footage of any new housing cannot be less than the original property. Furthermore, the bill mandates coverage for temporary rental costs and the payment of an additional 12% compensatory premium.

During relocation, residents must be placed in areas with established infrastructure that account for their social needs. All moving expenses and associated losses will also be fully reimbursed.

According to the senator, the document anchors urban development in core legal protections: voluntary participation, the sanctity of private property, and the principles of openness and transparency.

 

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