The key facts

  • A draft law on shared construction of apartment buildings and other real estate objects with an escrow account mechanism is under consideration in the Legislative Chamber of the Oliy Majlis.
  • The Committee has deemed unacceptable the situation where buyers are left without apartments and without their money.
  • The escrow mechanism also provides for engaging another developer in case of project-related problems.

Scandals involving developers and the committee's response

In recent days, social media has been actively discussing situations related to the activities of certain construction companies: buyers are complaining about missed deadlines for handing over housing and the failure to return paid funds, while criminal cases have been initiated against the management of several developers. UzNews.uz reports on this, noting that the publication previously reported on one such incident involving the Imarat Development company project. Kun.uz also points to this, separately mentioning the situation surrounding Imarat Development as the background for the current discussion.

Statement by the National Committee on Urbanization

The National Committee for Sustainable Urbanization and Housing Market has issued an official statement, deeming unacceptable the situation where citizens who invested funds in purchasing housing are left without the promised apartments and without the possibility of recovering their money. The Committee also emphasized that the foundation of housing construction must be reliable protection of buyers' funds, unconditional fulfillment of obligations by developers, and transparent, equal conditions for honest market participants.

What changes are proposed

To prevent such cases, a draft law titled 'On Shared Construction of Apartment Buildings and Other Real Estate Objects' is currently under consideration in the Legislative Chamber of the Oliy Majlis. The document provides for the introduction of an escrow account system: buyers' funds will be placed in special bank accounts, and developers will receive them only after fulfilling established conditions. According to the Committee's assessment, this will significantly reduce the risks of fraud and misappropriation of citizens' funds.

Continuity of construction and trust in the market

In addition to protecting buyers' money, the escrow mechanism, as noted in the Committee's statement, ensures continuity of construction: in case of serious problems with project implementation, another developer can be promptly engaged so that construction will be completed even if the initial developer fails to fulfill its obligations. According to experts cited by the Committee, the earliest possible introduction of the escrow system is a necessary step to prevent crisis situations and restore citizens' trust in the housing construction market. For now, the draft law remains only at the stage of parliamentary consideration: no information has been published regarding adopted decisions or timelines for its adoption.