Mechanisms of Land Plot Privatization in Uzbekistan

Privatization of land plots is one of the key areas of land reform in Uzbekistan. With the transition to a market economy, it became necessary to form the institution of private land ownership, especially for non-agricultural plots used for business and residential purposes. The main provisions were established in the Law “On the Privatization of Land Plots Not Intended for Agricultural Use” and subsequent regulatory acts, in particular, Resolution of the Cabinet of Ministers No. 71 of February 14, 2022.

Land privatization in Uzbekistan is regulated by:

• The Constitution of the Republic of Uzbekistan, which establishes the principles of land use;
• The Law “On the Privatization of Land Plots Not Intended for Agricultural Use”;
• Presidential Decrees (e.g., PF-6243 of June 8, 2021);
• Resolutions of the Cabinet of Ministers (particularly No. 71 of 14.02.2022).

These documents define the conditions, procedures, and mechanisms for transferring land into private ownership for citizens and legal entities.

Main Mechanisms of Privatization

1. Privatization of Land in Permanent or Lifetime Inherited Possession

• Citizens and legal entities may purchase land plots previously granted to them under rights of permanent use, lease, or lifetime inherited possession.
• The procedure is carried out through the automated information system “Yerxususiylashtirish.”

2. Electronic Online Auctions

• Free non-agricultural land plots are sold or leased via the “E-auksion” electronic platform.
• Information about lots is generated in the “Yerelektron” system, which ensures coordination and registration of cadastral data.

3. Administrative Procedure through Public Service Centers

• Applications for privatization are submitted through Public Service Centers or the Unified Portal of Interactive Public Services (EPIGU).
• Applications undergo automated checks for compliance with urban development plans, cadastral data, and third-party rights.

4. Financial and Settlement Mechanism

• The value of a privatized plot is determined by a formula that includes the plot area, base tax rate, cadastral registration fee, and topographic survey costs.
• Payment is made through a unified billing system, after which a state ownership order is automatically issued.

Guarantees and Restrictions

• Land may be privatized only if there are no urban-planning constraints.
• Privatization is prohibited for plots occupied by cultural heritage sites, environmental protection areas, or strategically significant facilities.
• After privatization, land plots may be used as collateral for obtaining loans, enhancing their economic value.

Institutional Infrastructure

The reform involves the following institutions:

• Agency for State Asset Management (Davaktiv agentligi) — operator of the “Yerxususiylashtirish” system;
• Cadastral Agency under the State Tax Committee — maintains the state real estate register;
• Public Service Centers and EPIGU — ensure accessibility of procedures;
• Commercial banks — accept privatized land plots as collateral for loans.

Socio-Economic Significance

Land privatization mechanisms aim to:

• Form a full-fledged real estate market;
• Increase regional investment attractiveness;
• Strengthen property rights guarantees;
• Enhance transparency of land relations and reduce corruption risks.

Privatization in Uzbekistan is implemented through a well-structured legal and institutional system. The main mechanisms include administrative procedures via “Yerxususiylashtirish,” online auctions through “E-auksion,” and integration with cadastral databases. This system ensures transparency, legality, and equal opportunities for citizens and legal entities, transforming land into a market asset that stimulates economic growth.

Comparative Characteristics of Land Privatization Mechanisms in Uzbekistan

Privatization Mechanism	Eligible Participants	Object of Privatization	Key Procedures	Payments / Valuation	Final Document	Timeframe
1. Privatization of land in permanent use or lifetime inherited possession	Citizens and legal entities previously granted land under permanent use, lease, or lifetime possession	Non-agricultural plots assigned to the applicant	- Submission via Service Center or EPIGU; - Verification in “Yerxususiylashtirish”; - Coordination with cadastral and architectural bodies; - Payment of purchase price.	Formula: base rate × area + cadastral & topographic costs	State ownership order + registration in state register	~20 working days
2. Electronic Online Auction (“E-auksion”)	Any citizens and legal entities of Uzbekistan	Free non-agricultural land plots (for business, construction, urban development)	- Formation of lot info in “Yerelektron”; - Listing on “E-auksion”; - Bidding process; - Signing of sale or lease agreement.	Starting price — not below base land tax rate; final price — by auction results	Sale/lease agreement + registration	10–15 days
3. Privatization under State Programs (Investment Projects, Industrial Zones, Urban Plans)	Investors, entrepreneurs, industrial zone residents	Land allocated for investment projects, industrial or youth zones	- Master plan development and approval; - Project approval; - Land allocation by hokimiyat decision; - Signing of investment agreement.	Terms and value defined by investment agreement/program	Investment agreement + registration	Individual terms (1–3 months or more)
4. Privatization for Individual Housing Construction	Citizens of Uzbekistan	Plots for individual housing and landscaping	- Application via Service Center or EPIGU; - Cadastral verification; - Payment as per formula; - Receipt of ownership order.	Formula: base rate × area + cadastral & topographic costs	State order + registration in state register	15–20 working days

Conclusions

• The “Yerxususiylashtirish” mechanism (purchase of previously allocated plots) is most relevant for citizens and organizations already holding land.
• Online auctions ensure competition and transparency, forming a true market price for land.
• Investment programs and industrial zones serve large investors and enable comprehensive territorial development.
• Housing privatization is designed for individuals and follows a simplified procedure.

Stages of Privatization of Non-Agricultural Land Plots in Uzbekistan

Stage No.	Participants	Actions	Timeframe
1	Applicant (individual or legal entity)	Submits privatization application via Service Center or EPIGU; pays a fee (10% of BCU).	As decided by applicant
2	Service Center / EPIGU	Forwards the application to the “Yerxususiylashtirish” system for automated verification.	Real-time
3	District Cadastral Chamber	Verifies ownership data, boundaries, restrictions, and registry compliance; prepares topographic plan if needed.	Up to 7 working days
4	District/City Department of Architecture and Construction	Checks compliance with master and detailed urban plans.	Up to 5 working days
5	“Yerxususiylashtirish” System	Generates approval or refusal notice and sends it to the applicant via EPIGU or Service Center.	Automatically
6	Applicant	Upon approval, pays the privatization cost (formula: base rate × area + cadastral + topographic costs).	Up to 10 working days
7	“Yerxususiylashtirish” System & State Asset Management Agency	After payment, issues a state ownership order and forwards it to cadastral authorities.	Automatically
8	Territorial Cadastral Chamber	Registers ownership in the State Real Estate Register; issues an extract.	Up to 2 working days
9	Service Center / EPIGU	Delivers ownership order and registry extract (with QR-code) to applicant.	Real-time

Thus, the privatization of a land plot involves nine stages — from submitting an application to ownership registration. The entire process takes approximately 20 working days, provided that payment is made on time and no legal obstacles arise.