A new era in home buying begins in Uzbekistan on July 1, 2025 — the escrow system is being introduced. This innovation will not only strengthen financial discipline in the construction sector but also play a crucial role in guaranteeing citizens’ rights.
Escrow – buyer’s funds protected by the bank
Escrow is a special payment system aimed at mitigating financial risks, under which the buyer’s funds are not transferred directly to the construction company but are deposited into a dedicated bank escrow account. These funds are released only after specified conditions are met. That is, once at least 30% of construction is completed, the bank transfers the payment to the developer.
This new approach reduces risks in the housing market, prevents fraud, and most importantly — the buyer’s funds are secured.
Only state-registered projects allowed
From now on, home purchase agreements will be drawn up only for legally formalized construction projects registered in the state registry. This strengthens the legal basis for construction projects and curbs illegal trade on the “black market.”
Phased system rollout
The new procedure will operate in parallel with existing mechanisms from July 1 to December 31, 2025. However, starting January 1, 2026, settlements will only be made through an escrow account.
This transitional period allows citizens, banks, and construction companies time to adapt. At the same time, state control will increase, and every stage of construction will be inspected.
“Transparent Construction” — a control mechanism
To ensure financial integrity and transparency, a new information system — the “Transparent Construction” platform — will be launched. Through it, data on each construction project will be recorded electronically.
This information will be automatically submitted not only to government agencies but also to tax authorities. As a result, every step in the construction process will be open and transparent.
What will change?
Buyers will entrust their money to secure protection;
Construction companies will receive funds only after completion of agreed work;
Illegal construction projects will be restricted;
The state’s ability to control the construction sector will improve;
Clear data will be available for the tax system.
How has society responded?
Public discussion has heated up. Most people view the escrow system as protection against gross errors and fraud by unscrupulous builders. Some believe the mechanism benefits banks more.
Nevertheless, many analysts see this as a major turning point in the housing market. It reduces uncertainty in construction and boosts citizens’ confidence.
Conclusion:
From July 1, 2025, everything about home buying will change. The escrow system will protect your funds from any risk. Every payment, every stage of construction will now be under control. This may build a solid foundation not only for citizens but for the entire economy.
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