President Shavkat Mirziyoyev convened a meeting on March 12, focusing on the acceleration of house construction and the development of "New Uzbekistan" massifs, press service of the president reported.
Over the past four years, Uzbekistan has witnessed an increase in housing development, propelled by the implementation of a market-based mortgage system. With an infusion of UZS 100 trillion ($8 bn) from various sources, the country has successfully erected 6,000 apartment buildings, providing shelter to 250,000 families. Notably, 45,000 low-income households received vital subsidies, totaling UZS 2.4 trillion ($192 mn), easing their access to housing.
Building on this momentum, Uzbekistan saw an impressive uptick in housing construction last year, with 85,000 new homes completed—an increase of 1.5 times compared to 2022. Concurrently, mortgage loans worth UZS 17 trillion ($1.4 bn) were disbursed, empowering citizens to fulfill their homeownership aspirations.
Undeterred by challenges, the government remains steadfast in its mission to address the burgeoning housing needs of a growing population. To this end, plans are underway to construct 100,000 houses as part of the forthcoming program, reflecting a proactive stance towards sustainable urban development.
During the meeting, critical attention was directed towards optimizing the cost and quality of new residences, with a mandate to rectify existing disparities. Government officials were tasked with streamlining construction expenses while enhancing housing standards. To stimulate supply, the decision was made to auction additional land for the construction of multi-story buildings, thereby bolstering the housing market.
President Mirziyoyev unveiled a slew of new measures aimed at fostering an enabling environment for both residents and builders. Notably, an allocation of UZS 22.5 trillion ($1.8 bn) from various sources is earmarked for mortgage financing this year. A significant portion, approximately UZS 10 trillion ($798 mn), will be channeled into mortgage loans, while UZS 2.3 trillion ($184 mn) will be dedicated to supporting low-income families with initial contributions and interest payments.
Moreover, UZS 500 bn ($40 mn) will be allocated to augment the working capital of contracting organizations, with preferential loans extended to bolster their operational capacities. Additionally, banks will play a pivotal role in advancing housing affordability by contributing their resources towards these noble objectives.
In a bid to streamline construction processes and facilitate home acquisitions, eligibility criteria for contractors have been revised, allowing the engagement of additional qualified entities. Furthermore, the introduction of a green standard in housing construction underscores Uzbekistan's commitment to environmental sustainability, with incentivized loans offered to contractors adhering to eco-friendly practices.
Acknowledging the vital role of the Mortgage Refinancing Company, efforts are underway to bolster its financial prowess and expand its capacity to serve the populace. Plans to increase its authorized capital to $100 mn underscore the government's resolve to fortify the housing sector's financial infrastructure.
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