How is the compensation amount determined in renovation?
In Uzbekistan, a special procedure has been established for reaching agreements with property owners when implementing renovation projects in comprehensive development areas. Within the framework of the project, housing may be purchased, or another property or housing within the same area may be provided in its place. In cases where an agreement is not reached, the issue of compensation will be resolved through the courts.
How is the compensation amount determined in renovation?
By the President's Resolution No. PP-73 dated February 24, 2026, the mechanisms for the comprehensive construction of multi-apartment residential complexes have been established.
According to the resolution, from March 1, 2026, to March 1, 2028, a special legal regime will be in effect as an experiment in certain areas.
In accordance with the established procedure, the investment company first conducts negotiations with the owners of real estate in the comprehensive construction area. The owner may also participate in the project with their property on the basis of an agreement concluded with the investment company.
During the negotiation process, the investment company may purchase the property and its corresponding land plot, or the parties may agree in another form. In particular, the possibility of providing the owner with another property or housing from the area where the comprehensive construction is being carried out instead of their existing property is also provided for.
To implement the comprehensive construction project, notarized agreement contracts must be concluded with at least 80 percent of the owners of real estate objects in the area.
If an agreement is not reached with certain owners, or if they are dissatisfied with the type and amount of compensation, the investment company appeals to the court. In such a case, the average market price formed on the basis of notarized agreements concluded with other owners is taken as the basis for determining the amount of compensation.
The presidential resolution also defines the initial areas where comprehensive construction projects will be implemented. Among them are the Jarqorgon mahalla in the Yashnobod district, the Abdurauf Fitrat mahalla in the Mirobod district, and the Xonobodtepa mahalla in the Sergeli district of Tashkent city.
Additionally, the Ravnaq mahalla in Namangan city has also been designated as a comprehensive construction area. The list of the resolution also includes areas in the cities of Samarkand and Karshi.
One of the main conditions of this mechanism is the protection of the rights of real estate owners. Along with the introduction of comprehensive construction mechanisms, the resolution specifically defines the goal of guaranteeing the unconditional protection of owners' rights.