Uzbekistan has signed a landmark law on urban renewal and renovation, establishing clear guidelines for upgrading the country’s aging housing stock. The announcement was made on June 10 following a meeting chaired by President Shavkat Mirziyoyev.
During the meeting, officials highlighted that 17,000 apartment buildings constructed prior to 1991 could be replaced with modern, energy-efficient residential complexes equipped with the necessary community infrastructure.
Until now, Uzbekistan lacked a unified legal framework to regulate urban renovation. The newly enacted law defines the boundaries of renovation zones, establishes procedures for securing resident consent, outlines compensation and relocation mechanisms, sets investor obligations, and delineates the powers of government authorities.
In an interview with the O'zbekiston 24 television channel, Minister of Justice Akbar Tashkulov stated that the law "for the first time creates a unified legal foundation for area redevelopment projects," aimed at replacing outdated housing with modern residential spaces and infrastructure.
"Until now, these processes lacked comprehensive legislative oversight. The law underwent public discussion, was approved by parliament, and has now been signed by the president," the minister said.
Akbar Tashkulov emphasized that under the new regulations, renovation projects can only proceed after conducting a thorough assessment of residents' needs and with mandatory consideration of property owners' opinions.
"All decisions will be made based on agreements reached with property owners. For every renovation project, government bodies will serve as the primary coordinator, ensuring full transparency across all procedures and monitoring the execution of commitments," he noted.
According to the minister, this approach will provide additional state guarantees protecting citizens' housing rights and the legal interests of property owners "at every stage of project implementation."
The renovation initiatives are expected to modernize the country’s aging housing stock, establish safe and comfortable living conditions for the population, upgrade engineering and utility networks, and expand green spaces and social infrastructure.
About the Law
The Urban Renovation Law was approved by the Senate on April 7. Uzbekistan currently has more than 42,000 apartment buildings containing 1.4 million apartments, roughly 74% of which were built prior to 1991. Under the renovation blueprint, 17,000 aging two- and three-story buildings (comprising approximately 255,000 apartments) are slated for replacement with modern seven- to nine-story residential complexes equipped with up-to-date engineering, social infrastructure, and green spaces.
The legal framework outlines a tripartite participation model involving the state, private investors, and property owners. The state can participate financially in these projects through dedicated renovation funds, capped at the valuation of the state-owned land parcels or assets involved. Republican and regional funds are being established specifically to finance the renewal of dilapidated housing in remote or lower-yield areas that are generally less attractive to private investors.
For businesses, the document establishes unified project implementation phases, a standardized procedure for entering into agreements with property owners, compliance monitoring mechanisms, tax incentives, and avenues for attracting supplementary funding in cases of capital shortages.
Protecting resident rights stands as a foundational requirement of the law. Launching a project requires the notarized consent of at least 80% of property owners; however, actual demolition and construction are permitted only after all compensation matters have been fully resolved with every single owner.
To prevent friction between residents and private developers, state-owned investment companies will handle the initial phase of renovation. Their mandate is to secure the necessary 80% consent threshold, resolve any outstanding disputes with the remaining residents, and only then put the fully cleared plots up for public auction.
"Once that 80% threshold is met, the investment company gains the legal authority to move forward. It then addresses the remaining 20%, stating: 'We have reached agreements with 80% of the owners, establishing an average price of X per square meter. We now have the right to take this to court. Let us reach an agreement.' The rights of the 80% of owners matter too. Yes, property rights are fundamental, but the choices of a single individual should not cause everyone else to suffer," Sherzod Kudbiev, the head of the National Urbanization Committee, previously stated.
Displaced residents must be offered new housing of equal or greater square footage—either within the same neighborhood or in another location—a commercial space, or cash compensation. The framework also covers temporary rental costs, moving expenses, and provides an additional 12% premium payout. Furthermore, if compensation is delayed by more than 24 months after a resident surrenders their property share, a daily late fee of 0.05% will be levied against the developer.
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