Procedure for the Sale of Land Plots for Business Activities

The sale of land plots in Uzbekistan is a key element in forming a modern land market and ensuring sustainable territorial development. Under market economy conditions, the efficient allocation of land resources for business and urban development purposes acquires particular importance.

The legal basis of this process is established by the Law “On the Privatization of Land Plots Not Intended for Agricultural Use”, as well as by several decrees of the President and Cabinet of Ministers of the Republic of Uzbekistan, including Resolution No. 71 of February 14, 2022.

The system for the sale of land plots is based on the following acts:

• Law of the Republic of Uzbekistan “On the Privatization of Land Plots Not Intended for Agricultural Use”;
• Presidential Decree No. PF-6243 of June 8, 2021 “On Measures to Ensure Equality and Transparency in Land Relations…”;
• Cabinet of Ministers Resolution No. 71 of February 14, 2022 “On Measures to Implement the Law of the Republic of Uzbekistan ‘On the Privatization of Land Plots…’”.

These acts establish the principles of equal access for individuals and legal entities to land resources, digitalization of procedures, and the mandatory sale of land plots primarily through electronic auctions.

Electronic Platforms and Digitalization of Procedures

The main instruments for the sale of land plots are:

• E-auksion platform — conducts online auctions for the sale of ownership or lease rights to land plots.
• Yerelektron system — used for forming and approving information about available land plots to be auctioned.
• Yerxususiylashtirish system — an automated information system for formalizing land privatization and integrating it with cadastral authorities.

Digitalization ensures transparency, eliminates subjective factors, and reduces processing times.

Stages of the Sale Process

According to the approved procedure, the sale of land plots for business and urban development activities is carried out in several stages:

1. Formation of the Land Fund – Cadastral agencies and local khokimiyats (municipal authorities) identify free land plots, formalize them as state property, and register them in Yerelektron.
2. Listing for Auction – Land plots are entered into the E-auksion database with the initial price and conditions indicated.
3. Electronic Auction – The ownership or lease right is granted to the participant who offers the highest bid during the online auction.
4. Contract Execution – Based on the auction results, a sale or lease agreement is signed.
5. State Registration of Rights – The cadastral authority enters information into the state register, and the applicant receives a state order (title) and an extract from the register.

Special Conditions for Business and Urban Development

• Land plots can only be sold if urban planning documentation (such as a general plan or master plan) is approved.
• In the absence of such documents, land plots can only be leased until the approval of planning documentation.
• For large-scale projects (over 1 ha) or areas with tourism or infrastructure potential, a master plan must be developed with the participation of professional design organizations and international experts.

Financial and Legal Aspects

• The starting price of land plots is determined based on basic land tax rates.
• Payment is made through a unified billing system.
• Land acquired through auction can be used as collateral for obtaining bank loans.

Practical Significance and Prospects

The introduction of electronic auctions and integrated cadastral systems ensures:

• Transparency in land relations;
• Investment attractiveness of territories;
• Rational urban planning;
• Reduction of corruption risks.

Future development perspectives include:

• Expanding the coverage of land plots;
• Ensuring mandatory digital integration of all agencies;
• Incorporating international best practices in urban planning.

Thus, the procedure for selling land plots in Uzbekistan for business and urban development constitutes a comprehensive system based on electronic auctions, digital cadastral processes, and strict compliance with urban planning documentation. It ensures fair access to land resources, stimulates entrepreneurship, and contributes to the sustainable development of regions.

Procedure for Land Sale via Electronic Auctions

Stage	Responsible Entity	Actions	Timeframe
1. Formation of the Land Fund	Cadastral Agency, Khokimiyat	Identify free plots (not transferred to individuals/legal entities); register them as state property; enter data into Yerelektron.	2 working days for decision registration in E-qaror system
2. Data Entry into the System	Cadastral authorities, Khokimiyat	Enter cadastral data (number, area, restrictions, purpose) into Yerelektron; verify existence of urban planning documents.	Real-time (online)
3. Determining the Form of Sale	Cadastral Agency, Khokimiyat	If a master/general plan exists → sale of ownership; if not → lease option.	Simultaneously with data entry
4. Auction Publication	E-auksion Operator	Create auction notice; set starting price (based on land tax rates); ensure open access to information.	Same day as data entry
5. Auction Process	E-auksion Operator, Participants	Participants register and submit bids; auction held online via price increase; winner is the highest bidder.	As per regulations (usually 1–3 days)
6. Contract Execution	Winner, Khokimiyat, Operator	Sign sale or lease agreement through E-auksion; fix land-use conditions.	Immediately after auction
7. Rights Registration	Cadastral Agency, State Property Committee	Issue state order through Yerxususiylashtirish; register ownership or lease rights; provide register extract to applicant.	2–3 working days after contract
8. Land Use	Owner or Tenant	Use the plot strictly for its intended purpose (business or urban development); may be used as collateral for loans.	Ongoing (throughout lease term or indefinitely if owned)