Municipal properties that are not sold at auction will be leased to businesses on preferential terms

Resolution of the Cabinet of Ministers No. 400 of June 30, 2025 approved changes aimed at improving the efficiency of using state and municipal property. The document introduces a new mechanism for managing real estate objects that are not sold at auction.

According to the updated Regulation on the procedure for the sale of state-owned real estate objects, municipal premises owned by local authorities will be able to be transferred for long-term lease to business entities, if they have not been sold through auction procedures within six months.

We are talking about objects with an area of up to 10,000 m2 and an estimated value of no more than 5,000 basic design values (BWR). The mechanism applies to property outside administrative centers — with the exception of objects located in the city of Nukus, regional and district centers, as well as in districts of the city of Tashkent.

The lease is provided for a period of up to 10 years with a minimum rental rate. The main criterion for obtaining such facilities for use is the entrepreneur's obligation to implement an investment or production project within two years, create new jobs and ensure the development of production, services or services in the leased territory.

It is expected that the measure will contribute to the revival of economic activity in the regions, increase the investment attractiveness of municipal territories and rational use of idle state real estate.

This step reflects the desire of the authorities to decentralize the instruments of economic development, activate the private sector and involve business in the reanimation of economically unused assets.