Housing Finance Development 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.