Property demolition in Uzbekistan: renovation and compensation

Demolition is lawful only under the applicable procedure. A public-needs acquisition requires a decision, a notarised agreement and full compensation before the property is vacated. A tenant of public housing must receive other suitable housing. The new Urban Renovation Law will take effect on 12 December 2026 (Article 61 of the Renovation Law).

In brief:

• an ordinary redevelopment project does not turn demolition into a public-needs acquisition: the acquisition purposes form a closed list (Article 4 of Law No. ZRU-781)
• an acquisition decision by itself does not authorise demolition (Article 21 of Law No. ZRU-781)
• the owner is compensated for the property, land right, relocation and other losses, with an additional 5% inconvenience payment (Article 23 of Law No. ZRU-781)
• when the new law takes effect, a renovation project will require consent from at least four fifths (Article 7 of the Renovation Law) of the rights holders for each property
• an owner or land tenant should first identify the applicable procedure and the registered rights involved, because these determine consent, compensation and relocation rights

Updated: 05 September 2026

Legal grounds and acquisition procedure

How renovation, acquisition and emergency demolition differ

There is no single legal regime called “demolition”. Public-needs land acquisition, demolition of unsafe buildings, demolition of unauthorised construction and urban renovation have different grounds, decisions and consequences. The Renovation Law expressly separates these procedures (Article 1 of the Renovation Law): it does not apply to public-needs acquisition or the buyout of privately owned land.

For an unsafe building, the house or residential premises must first be declared unfit and removed from the housing stock. It may then be demolished by a competent-authority decision (Article 18 of the Housing Code). If a structure was built on land not allocated for that purpose, without the required permit or in material breach of construction rules, the person who built it must generally demolish it at their own expense under a court decision (Article 212 of the Civil Code).

Urban renovation will become a separate regime after the new law takes effect. A “rights holder” is not limited to the owner of a building: it also covers a holder of lifetime inheritable possession, permanent use, a land lease or another prescribed right, but not a subtenant (Article 3 of the Renovation Law). A residential tenant or a tenant of business premises does not become a project rights holder merely because they rent the building.

This article does not repeat the process for obtaining land and construction permits for a new project. That process is covered in Land and commercial construction, which is relevant once the demolition dispute has been separated from the requirements for the new development.

How a public-needs acquisition proceeds

Acquisition is permitted only for the purposes expressly listed by law: defence and security; protected natural areas and special economic zones; international obligations; mineral extraction; listed transport, energy, utilities, irrigation and other infrastructure; the state-budget part of master plans; and centrally funded construction of state social institutions. Any other purpose is not a public need (Article 4 of Law No. ZRU-781).

The initiator must show that there is no suitable alternative site. It must first consider sites with unsafe or uninhabitable housing and unused buildings, and only then other sites (Article 13 of Law No. ZRU-781). This priority does not authorise demolition of an unsafe building without the later procedural stages.

An open discussion follows. The rights holder must receive written notice at least seven days (Article 20 of Law No. ZRU-781) in advance; audio and video recording, media attendance and online participation must be available. The discussion is valid if two thirds of the rights holders or their representatives participate, and the minutes are published on the following business day.

After legal review, the draft is considered by the Jokargy Kenes of Karakalpakstan or the relevant local Kengash. Approval requires two thirds of all deputies. The authority then agrees the terms, form and amount of compensation with each rights holder and signs a notarised agreement (Article 22 of Law No. ZRU-781).

Privately owned land is governed by a separate rule: its buyout is documented by a sale contract, requires the owner's written consent and may proceed only after the state pays the entire contract price (Article 36 of Law No. ZRU-728). Ownership of the land must therefore be distinguished from a right to use or lease state-owned land.

Owner and tenant compensation

What an owner receives upon acquisition

Compensation is not limited to the price of an apartment or building. It includes the market value of the property, the market value of the land right, perennial plants, moving and temporary rent costs, lost profits for no more than one year, and other statutory or agreed costs and losses. The owner also receives a separate payment equal to 5% of the property value (Article 23 of Law No. ZRU-781) for inconvenience.

The parties agree the form: money, temporary rental of another property, transfer of replacement property, or another agreed form. Where temporary premises are provided pending a new property, construction must finish within 24 months (Article 24 of Law No. ZRU-781), after which the initiator owes 0.05% of the appraised value for each day of delay.

For a dwelling owned by an individual, the options include equivalent suitable housing no smaller than the social housing norm, or the full market value of the house, structures, plants and land right. If the replacement is more valuable, the owner does not repay the difference (Article 27 of the Housing Code). The owner may instead choose land for an individual house, with temporary rented housing for up to three years (Article 28 of the Housing Code).

A corporate owner receives equivalent real estate and compensation for its other losses, or full compensation for losses (Article 29 of the Housing Code). By agreement with the initiator, a house or structure may be moved to another site (Article 30 of the Housing Code) where this is technically and economically justified.

The payment dates must be written into the agreement. Monetary compensation is due within one month, other forms within six months, and agreements with every owner in one apartment building must be signed within three months (Article 25 of Law No. ZRU-781). If the property is mortgaged, the mortgage attaches to its replacement, while the mortgagee has priority over the compensation amount (Article 28 of the Mortgage Law).

Example. If the agreed market value of the property is UZS 800,000,000, the inconvenience payment is UZS 800,000,000 × 5% (Article 23 of Law No. ZRU-781) = UZS 40,000,000. If the new property is delivered 10 days after the maximum period, the penalty is UZS 800,000,000 × 0.05% (Article 24 of Law No. ZRU-781) × 10 = UZS 4,000,000. This is an illustrative calculation; the agreement or judgment determines the base and the final amount.

What rights tenants have

The type of agreement must be identified first. A land tenant, a public-housing tenant and a tenant of private premises are protected by different rules. A landholder, land user, tenant or landowner may claim compensation for losses (Article 39 of the Land Code), including lost profits. Losses must be paid in full before acquisition (Article 41 of the Land Code), and an infringed right must be restored.

A tenant of municipal, departmental or designated communal housing must receive other suitable housing (Article 71 of the Housing Code) if the building is demolished or the premises are declared unsafe. It must be in the same locality, meet the legal housing requirements and have at least the same total area; the eviction judgment must identify the specific replacement premises.

If reconstruction would make public housing impossible to preserve or would materially change its floor area, other suitable housing must be provided before work begins (Article 64 of the Housing Code). During ordinary major repairs, the tenant is temporarily rehoused without ending the tenancy, and the landlord pays both moving costs (Article 63 of the Housing Code).

A private residential or commercial tenant does not automatically receive an apartment or office from the state. The lease and civil law govern advance rent, a security deposit, relocation, improvements and termination. If a residential tenancy is terminated, eviction requires a court decision (Article 616 of the Civil Code). The tenant may recover the cost of consented inseparable improvements unless the contract provides otherwise; unapproved improvements are generally not reimbursed (Article 555 of the Civil Code).

Valuation, agreement and demolition

How to check the valuation and agreement

The valuation is performed after the acquisition decision but before the agreement is signed. Value is determined as it stood before the procedure began or before news of the acquisition affected the price. Only documents proving state registration are used to value the land right, and the initiator pays the valuer (Article 29 of Law No. ZRU-781).

Market value is the most probable price (Article 7 of the Valuation Activity Law) on an open market, without extraordinary circumstances and between informed, willing parties. The report should correctly identify the address, cadastral number, area, permitted use, improvements, valuation date and registered land right. Plants, business losses, temporary rent and moving costs should be assessed separately.

The notarised agreement should identify:

• every property and right being compensated;
• the form, amount and due date of each part of compensation;
• details of replacement property and the condition in which it must be delivered;
• payment of temporary rent and moving costs;
• the vacation period, starting only after full compensation;
• consequences of delay and the dispute process.

If the owner is under guardianship, the guardian needs permission from the guardianship authority for a notarised transaction and any action that may reduce the value of the ward's property. The authority must issue permission or a reasoned refusal within 15 days (Article 37 of the Guardianship Law). The guardian's signature alone is insufficient without that permission.

An owner also has a general protection: ownership may be terminated by a state decision only in exchange for equivalent property or full compensation for losses (Article 206 of the Civil Code). The special private-property law also requires owner consent, a notarised agreement, full compensation and written notice six months in advance (Article 19 of the Private Property Protection Law).

When property may be vacated and demolished

The vacation period starts on the date of full compensation, not on the notice date or the acquisition decision. The agreement may allow up to six months. Water, sewerage, electricity, communications, heating and gas may not be disconnected until the property is fully vacated; if the deadline is missed, the initiator must file an eviction claim (Article 26 of Law No. ZRU-781).

After documents proving full compensation are uploaded and the agreed vacation period expires, the initiator submits the list of properties to the Kengash. A separate demolition decision undergoes legal review and requires two thirds of all deputies; only that decision creates authority to demolish (Article 30 of Law No. ZRU-781).

Keys should not be surrendered, a vacation certificate should not be signed and title registration should not be terminated before full compensation is actually received. The special law links loss of rights to full compensation (Article 26 of Law No. ZRU-781), while the general civil-law rule bars demolition before payment (Article 206 of the Civil Code).

Planned renovation procedure

How renovation will be approved

From 12 December 2026 (Article 61 of the Renovation Law), a project will require notarised written consent from at least four fifths of the rights holders for each property. Consent will be documented in a notarised preliminary agreement that already states the form and amount (Article 29 of the Renovation Law) of compensation.

Participation will generally be voluntary: a rights holder may decide whether the property enters the programme. An individual notarised agreement will then be required with every rights holder, while the question concerning anyone with whom no agreement is reached will go before a court (Article 7 of the Renovation Law). No person may be unlawfully deprived of their home without a judgment.

An open discussion will take place before the programme is approved. It will be held within two months (Article 36 of the Renovation Law) after the concept is prepared, and written notice will be sent at least seven days (Article 36 of the Renovation Law) in advance. The programme draft will also remain on the public-consultation portal for at least 15 days (Article 32 of the Renovation Law).

An exception applies to an apartment building officially declared unsafe or dangerous to life and safety: a proposal to include it in the programme may be submitted without four-fifths support (Article 36 of the Renovation Law). The exception permits consideration to begin; it does not remove the need for individual agreements, compensation or a court decision on an unresolved dispute.

Before an agreement, it will be prohibited to coerce a rights holder (Article 37 of the Renovation Law) by disconnecting utilities, blocking access or creating intolerable conditions. Consent cannot be reduced to a blank signature: it is linked to agreed compensation, while participation remains the rights holder's choice (Article 10 of the Renovation Law).

How renovation compensation will work

After programme approval, the rights holder, the Directorate and the territorial fund will sign a tripartite agreement (Article 37 of the Renovation Law). It will state the conditions, forms, amount and timing of compensation, the fund's liability to the rights holder and the Directorate's liability to the fund.

Compensation will cover the property or its market value where money is paid, the market value of the land right and plants, moving costs, temporary rent, two years of lost profits (Article 40 of the Renovation Law), and other agreed costs and losses. Privatised land may enter the programme only through a buyout by agreement (Article 40 of the Renovation Law).

The law provides four forms of compensation (Article 42 of the Renovation Law) in this order: a new property in the renovation area; a property elsewhere; money; or another agreed form. Replacement residential or non-residential floor area must be at least as large as the former premises, ready for use and first offered on lower floors (Article 42 of the Renovation Law). It will generally be in the same district (Article 44 of the Renovation Law) or city.

The parties will agree the amount; otherwise, a court will determine it. The Directorate will also pay 12% of determined compensation (Article 41 of the Renovation Law) for inconvenience. A person holding a dwelling without title documents may also receive its value after 15 years of possession (Article 41 of the Renovation Law), subject to evidence of tax payments and the statutory exclusions. A person with a disability must receive premises with a barrier-free environment (Article 41 of the Renovation Law).

The Directorate will provide temporary premises until the new property is ready. If delivery takes more than 24 months, the penalty will be 0.05% per day (Article 43 of the Renovation Law) of the determined compensation. For monetary compensation or a property elsewhere, the agreement transferring rights may be signed only after full compensation (Article 49 of the Renovation Law).

Example. If the determined compensation is UZS 800,000,000, the additional inconvenience payment will be UZS 800,000,000 × 12% (Article 41 of the Renovation Law) = UZS 96,000,000. If the new property is delivered 10 days after the maximum period, the penalty will be UZS 800,000,000 × 0.05% (Article 43 of the Renovation Law) × 10 = UZS 4,000,000.

Changes and dispute protection

What changed in 2025–2026

• Law No. ZRU-1149 of 10 June 2026 creates a separate urban-renovation procedure six months after official publication; it will take effect on 12 December 2026.
• From that date, each property's four-fifths consent threshold, a preliminary agreement stating the form and amount of compensation, and an individual agreement with every rights holder will apply.
• Future compensation will include two years of lost profits and an additional 12% payment (Article 41 of the Renovation Law), while the current public-needs procedure limits lost profits to one year and adds 5% of the property value.
• The new renovation rules cannot be treated as current before 12 December 2026: a public-needs demolition is assessed under Law No. ZRU-781, while unsafe buildings and unauthorised construction remain under their own regimes.

What to do in a dispute

An owner or tenant should state in writing the precise issue being disputed: the legal basis, the list of rights holders, the valuation, the form or timing of compensation, the replacement property, or the demolition decision. The submission should include the registered-right extract, cadastral records, lease or tenancy agreement, valuation, payment evidence, moving and rental expenses, photographs and all correspondence.

A public-needs compensation dispute first goes to the Compensation Commission, which has three business days (Article 34 of Law No. ZRU-781). Its decision is advisory, and delay by the commission does not bar a court claim (paragraph 11 of the Supreme Court Plenum resolution on land disputes). A Kengash acquisition or demolition decision may also be challenged in court (Article 33 of Law No. ZRU-781).

Until a compensation dispute has passed through the pre-court stage and a judgment has entered into force, a demolition decision may not be adopted (Article 35 of Law No. ZRU-781). In proceedings to evict a public tenant, the court checks the acquisition decision and the address of replacement housing (paragraph 24 of the Supreme Court Plenum resolution on housing disputes); without the decision, the eviction claim must be dismissed.

After the Renovation Law takes effect, decisions of the national and territorial renovation councils may be challenged in court (Article 56 of the Renovation Law). Acquisition and demolition in breach of that law will be expressly prohibited (Article 57 of the Renovation Law).

Frequently asked questions

Can a property be demolished without the owner's consent?

The buyout of private land for public needs requires the owner's written consent, a sale contract and full payment in advance. Acquisition of a right over state-owned land follows Law No. ZRU-781: a decision, an individual notarised agreement, compensation and a separate demolition decision. A court decides an unresolved dispute; a notice or the appearance of an address in a draft does not authorise demolition.

Must a tenant receive the same compensation as the owner?

No. Compensation for the property and land right belongs to their rights holder. A tenant of private premises relies on the contract and may claim settlement of advance rent, a security deposit, consented improvements, early termination and proven losses. A tenant holding a registered land right has an independent claim for land-related losses. A public-housing tenant is entitled to other suitable housing.

When must premises be vacated after compensation?

The notarised agreement sets the period, which starts after all compensation has been provided. For a public-needs acquisition, it may not exceed six months. Utilities must remain connected until the property is actually vacated; if the occupant does not leave, the initiator must apply to court. Surrendering keys before payment can make it harder to prove that possession ended involuntarily.

Is the four-fifths consent requirement already in force?

No. It is contained in the Urban Renovation Law, which takes effect on 12 December 2026. Before then, it cannot replace the current public-needs acquisition procedure or the unsafe-building process. After that date, the threshold will apply to the rights holders for each property, with an exception at the proposal stage for an apartment building officially declared unsafe or dangerous.

What should be challenged if the valuation is too low?

Objections should separate the value of the building, the registered land right, plants, relocation, temporary rent, lost profits and other losses. A second valuation report should use the same valuation date and correct property details. For a public-needs acquisition, the dispute first goes to the Compensation Commission and then to court; no demolition decision may be adopted while it remains unresolved.