Jamshid Mirzayev, head of the Ministry's Economic Legislation Department, made the remarks while answering lawmakers' questions during a meeting of the parliamentary faction of the People's Democratic Party of Uzbekistan.
During the discussion, MP Anvarkhon Temirov asked whether requiring developers to obtain financing only through authorized banks would increase construction costs. Mirzayev said the issue had been studied by four research organizations, all of which concluded that the cost of construction could indeed rise.
He explained that developers currently use funds received directly from buyers as interest-free financing for construction projects. Under the proposed escrow system, however, buyers' payments would remain frozen in a bank account until the developer fulfills its contractual obligations. As a result, developers would have to rely on bank loans to finance construction, increasing costs because of interest payments.
"Yes, housing prices will rise in the future, but if a citizen does not receive the apartment, they will be able to go to the bank and recover their money," Mirzayev said.
According to the ministry, protecting buyers' funds is the primary objective of the new system. All payments made by homebuyers, including mortgage loans and government subsidies, would be transferred to escrow accounts held at authorized banks. Developers would gain access to the money only after meeting the conditions specified in their agreements.
On July 11, the Legislative Chamber's Committee on Entrepreneurship Issues held a preliminary review of a draft law on shared-equity housing construction. The bill aims to regulate relations between developers and buyers while strengthening legal safeguards for purchasers of new homes.
