Housing Finance Development in Uzbekistan

Overview of housing finance in Uzbekistan

This paper examines the Government of Uzbekistans initiatives towards a market-based housing finance system and recommends actions that would further this process. The paper states that:

  • Real estate market reforms are a priority for the Government of Uzbekistan;
  • Housing policy in the country needs to move on three simultaneous tracks:
    • Primary credit markets;
    • The residential real estate market;
    • The legal and policy framework;
  • To make housing affordable to low and moderate-income households, it will be necessary to have:
    • An efficient and transparent market for urban land;
    • Production capacity on the part of builders to build affordable housing;
    • Banks that can separately finance construction and the purchase of housing with mortgage loans;
  • The government needs to:
    • Revisit the role of the Mortgage Lending Support Fund (MLSF);
    • Redesign housing subsidies;
    • Make foreclosure and eviction possible from primary residences;
    • Improve the operation of the real estate market;
    • Develop the primary lending market.

Finally, the paper highlights challenges in:

  • Housing finance;
  • Housing affordability;
  • Simultaneous growth in population and the decrease in housing stock;
  • Policy framework for housing markets and housing finance.

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