Real estate transactions in Uzbekistan to shift to escrow-based model starting July 1

Starting July 1, 2025, Uzbekistan will implement an escrow system for real estate transactions, as outlined in a recently signed presidential decree. This system aims to strengthen financial discipline in the construction sector and create a safer environment for homebuyers.

The new procedure is designed to protect consumer rights and ensure legality in the housing and construction market.

Under the new system:

• Contracts may only be signed for construction projects officially registered with the state.
• Funds paid by buyers will not be transferred directly to construction companies, but will instead be deposited into special escrow accounts held at banks.
• Banks will release funds or issue loans to the developer only after at least 30% of the construction is completed.
• From July 1 to December 31, 2025, both the current and new systems will operate in parallel.
• Starting January 1, 2026, only transactions via escrow accounts will be permitted.
• A digital platform called “Transparent Construction” will be introduced to enhance transparency in the sector.
• Information on shared equity agreements will be automatically forwarded to the tax authorities.