Uzbekistan has taken a decisive step toward reshaping its urban landscape by adopting a new law on urban planning renovation, creating a single regulatory framework for renewing outdated residential areas and building modern, energy-efficient housing with full infrastructure.
New legal framework for renovating obsolete housing
The law on urban planning renovation was signed following a high level meeting led by the president of Uzbekistan, where the authorities confirmed that around seventeen thousand houses built before 1991 could be replaced with contemporary multi apartment buildings and supporting social infrastructure. Until now, Uzbekistan had no unified law governing renovation projects, which made large scale transformation of older districts legally and financially complex.
The new legislation formally defines urban planning renovation as a comprehensive set of measures to improve territories from architectural, social, economic and environmental perspectives, bringing existing buildings into a safe, comfortable and energy efficient condition, and ensuring more effective use of land plots. In practice, this means not just demolishing old blocks, but redesigning entire neighborhoods with better transport access, public spaces and utility networks.
In an interview with the national television channel Uzbekistan 24, the minister of justice Akbar Tashkulov stressed the systemic nature of the reform, stating that the law “for the first time creates a single legal basis for implementing projects to renew territories” and provides for the replacement of outdated housing stock with modern residential complexes and infrastructure facilities.
How renovation zones and projects will be formed
Under the new framework, specific renovation zones will be identified based on clear criteria, including the dilapidated or unsafe condition of buildings, their unsuitability for living and use, and the presence of factors that seriously affect the social life of residents. These zones are expected to be tied to the country’s master plans for cities and districts, giving urban planning documents real force in steering investment.
Renovation programs will be implemented in several stages. First, local authorities and specialists will select territories and prepare project concepts. Second, these projects will be reviewed and approved at regional and national levels, with designated developers chosen to carry out construction. Third, new buildings and infrastructure will be built and brought into operation, and the executive structures created for the project will later be dissolved once obligations are fulfilled.
The law allows renovation initiatives to come from three sides — local administrations, residents themselves, or private investors. This flexibility opens the door both for public programs to tackle emergency housing in less attractive regions and for commercially driven projects in higher demand urban locations.
Consent of residents and protection of property rights
A key principle of the law is voluntary participation. To include any territory in a renovation program, written notarized consent from at least four fifths of the owners — eighty percent of property holders in the proposed zone — is required. Without this threshold of support, a project cannot be initiated.
For implementation, separate agreements must be concluded with each individual owner, detailing the form of compensation and conditions for relocation. The law reinforces the inviolability of private property and prohibits depriving citizens of their housing without a court decision, substantially strengthening legal certainty for residents and investors alike.
Residents are guaranteed a choice of compensation mechanisms. They may receive new housing in the renovated area, housing in another district, a non residential premise, or a monetary payout. The area of the new dwelling cannot be smaller than the previous one, and the law provides for coverage of temporary rental costs during construction, as well as an additional compensation payment. These guarantees aim to reduce social risks and resistance to redevelopment.
State, investors and funding mechanisms
The renovation law introduces transparent rules for cooperation between the state, investors and property owners. The government can participate in projects through dedicated renovation funds at republican and regional levels, contributing the value of state owned land and assets to make schemes more financially viable, especially in areas that are less appealing for private capital.
Attractive urban locations, where land values are already high, are expected to draw in private developers who will invest in multi storey housing, social infrastructure and commercial premises. In contrast, remote or economically weaker zones can rely more heavily on public funds and blended financing models. This differentiated approach supports balanced regional development rather than concentrating renovation only in capital cities.
Investors receive a clearer risk profile, with the law spelling out their obligations, including project timelines, quality standards, and responsibility for providing agreed compensation and relocation arrangements. The existence of a single legal framework should make it easier to structure bank lending, insurance and long term investment products linked to renovation projects.
Impact on construction, materials, logistics and urban services
The planned replacement of thousands of low rise houses with modern mid and high rise apartment blocks will significantly expand the market for construction services, building materials, engineering systems and finishing products. Developers will need reliable supply chains for concrete and steel, insulation, facade systems, windows and doors, sanitary ware, electrical equipment, elevators and other components for energy efficient multi apartment buildings.
Renovation projects will also require integrated urban infrastructure — roads and transport links, parking, green areas, playgrounds, schools and medical facilities, as well as upgraded water, heating and power systems. This creates additional demand for project design, urban landscaping, smart city solutions and modern utility management technologies, opening space for partnerships between local firms and foreign engineering and design companies.
From a logistics perspective, large scale construction and relocation programs will increase the need for warehousing, regional distribution centers, and efficient transport corridors to deliver building components and interior products to multiple renovation sites across Uzbekistan. Financial institutions are likely to see growing demand for mortgage products, construction loans and structured financing tailored to renovation schemes.
New opportunities for furniture, interior and construction brands
For international companies in furniture, interior design, construction materials, home appliances and architecture, the renovation law signals a long term pipeline of residential and mixed use projects in Uzbekistan. Each new multi apartment building and renovated neighborhood represents hundreds of homes that will need kitchens, wardrobes, soft furniture, lighting, flooring, bathroom equipment and decorative solutions aligned with modern energy efficient and ergonomic standards.
Foreign manufacturers and traders can benefit by positioning themselves as partners for developers and local authorities, offering complete interior solutions, standardized product lines for typical apartment layouts, and services for furnishing show flats and turnkey delivery. Architecture and design studios can participate in competitions for renovation master plans, building concepts and landscape design, bringing international expertise in dense but livable urban environments.
This new regulatory framework reduces legal uncertainty and clarifies how renovation projects will be initiated, financed and implemented, which is crucial for long term investment decisions. Companies considering entry or expansion in the Uzbek market can now build more accurate forecasts of housing construction volumes and better understand the rules of engagement with state bodies, investors and residents. In macroregional terms, the law strengthens Uzbekistan’s position among Central Asian markets as a country moving toward structured, large scale urban modernization — a trend that promises sustained demand for quality construction, furniture and interior solutions over the coming years.
