Infographic: Concessional Mortgage Lending in Uzbekistan in 2021

Infographic: Concessional Mortgage Lending in Uzbekistan in 2021

In 2021, a six-month grace period for mortgages will be introduced and the down payment will be reduced from 20 to 15% in the cities. Developers will extend the benefits provided during the pandemic.

Over the past 4 years under the state program 140 thousand housing units were built, which is 2 times more than the number of residential buildings built during the past 10 years in Uzbekistan. However, it is no secret that the population's annual demand for affordable housing remains high.

In this regard, the Decree of the President of the Republic of Uzbekistan "On additional measures to provide the population with housing through mortgage loans on market principles" provides for housing for all segments of the population and expanding their choice in this regard.

It has been determined that loans will also be allocated for the construction and reconstruction of individual residential buildings. They will be provided for a period of 20 years. Low-income people will be able to take advantage of subsidies to cover part of the interest. The Ministry of Finance was instructed to allocate 1.5 trillion soums for these purposes, and the governors of the regions were instructed to determine the number of families in the context of districts that will receive such support.

The state will provide great benefits to both builders and home buyers. In particular, a six-month grace period for mortgage loans will be introduced this year. The down payment will be reduced from 20 to 15 percent in the cities.

Low-income families in need of better housing conditions will receive a subsidy of 10 percent of the down payment; buyers will only need to pay 5 percent of the down payment.

Payments on loans will also be subsidized in the part that exceeds the rate of 12 percent in Tashkent and 10 percent in other regions.

Also, the benefits provided to construction companies during the pandemic will be extended until the end of this year.

In particular, the Entrepreneurship Support Fund will provide construction organizations with guarantees of up to 20 billion soums on loans for housing construction, as well as compensation for interest in the part exceeding the base rate of the Central Bank.

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