What was the philosophy behind the construction of "Tashkent City"? Why should transport development precede construction? Why do capitals develop faster than other regions, and can this be changed? These and other questions were answered by territorial development expert Yulia Tokareva.
In urban planning terms, the construction of "Tashkent City" or New Tashkent is called territorial development. Such projects begin with a grand idea, which usually originates from the government. Consultants help authorities formulate these ideas and prepare the ground for their implementation.
Partner and Head of Strategic Consulting at Commonwealth Partnership, Yulia Tokareva, told Gazeta.uz what is needed for territorial development, why transport development should precede territorial construction, and how to enhance Uzbekistan's attractiveness to investors.
Commonwealth Partnership is an international group of companies that advises businesses and government structures on territorial development. It has been operating in Uzbekistan since 2018. During this time, it has implemented 16 projects, including the development of the commercial concept for Tashkent City, the concept for a multifunctional complex on the former Ucell parking lot near Amir Timur Square, and recommendations for the concept of constructing Seoul Mun, an industrial and warehouse zone in Samarkand, among others.
As a reminder, in a previous article, Yulia Tokareva discussed why expensive housing is built first in the real estate market, how to diversify supply, and whether a mortgage bubble can be avoided.
Who Develops Territories?
Large-scale development projects are often implemented on territories of 50 hectares or more. The initiative for developing such extensive areas usually comes from the state. Their implementation begins with a grand idea designed to solve larger challenges.
For example, the idea behind the construction of "Tashkent City," the first modern territorial development project in Uzbekistan, is to demonstrate the growth of the country's investment market. The urban planning paradigm of this project aims to shape a new lifestyle and create new opportunities for economic and social development.
The project territory will house offices for national and international companies. It will feature the best shopping center, the country's first skyscraper, high-quality mid-rise housing, and a park. Thus, new companies entering the region will assess the investment potential not only of this specific territory but of the country as a whole.
Based on the territorial development philosophy, the state develops a master plan and defines technical objectives.
The second level of stakeholders in territorial development includes developers and investors. Worldwide, we see private companies building real estate for various purposes: residential, commercial, recreational, and public spaces. The state's task is to develop a project that is financially and technologically attractive to developers.
Moreover, for a project to attract investors, consumers must want to buy housing in the new district, visit the shopping center or park, and companies must be willing to open offices in business centers or occupy retail spaces. To achieve this, the government and developers must devise a territorial development strategy that allows the end consumer to fulfill their needs.
How to Attract Investors to Territorial Development Projects?
The primary stakeholder in the development of large territories is always the government. The implementation of such projects replenishes the budget, creates jobs, develops services, increases the loyalty of local residents and businesses, and strengthens the city's image both locally and internationally.
Crucially, the key impetus for territorial development worldwide is transport infrastructure—the most important factor that stimulates demand for territories. An example is the construction of the Moscow Central Circle (MCC), an above-ground railway line connected to metro stations. Historically, the line ran through the city's industrial zones and was used for industrial purposes. Before the MCC opened, the area was of little interest to investors, but after its opening, multifunctional complexes with residential, office, commercial, hotel, and cultural functions began to appear.
Another example is New Moscow, a territory adjacent to the city covering 1480 sq. km. After metro stations opened here, the value of residential real estate increased by 20%—a direct effect of transport infrastructure construction.
Currently, the possibility of building a high-speed tram line towards the Chirchik River, where New Tashkent will be located, is being discussed in Tashkent. Global experience in transport project development shows that investor and developer interest in a territory begins to grow even on the back of news about the emergence of a major high-speed network, as they anticipate increased demand.
The key beneficiary of an efficient transport system is the territory's residents. If a high-speed highway is built for residents, they gain convenient and quick access to services in other parts of the city. Such a prospect always attracts investors.
From the perspective of long-term urban development, it is essential for the development of the transport network to precede project implementation. This approach fosters proper transport habits among the population. If a large residential area is built outside the city without rapid public transport, residents will naturally buy cars, leading to traffic jams that often clog a single main artery. It is more optimal to build a metro or other public transport network first, and then develop the entire district, as changing habits is more difficult than forming them.
In this regard, Tashkent has two types of territorial development projects. Some projects are implemented within the city and rely on the existing transport network. For instance, a new road is not built specifically for a new business center. It is the developer's task to figure out how users will reach the facility. This might involve coordinating additional exits or installing traffic lights. The issue is resolved in conjunction with the regulator, but the initiative comes from the investor.
When developing large territories like New Tashkent, investors and developers initiate dialogue with the city to address transport issues at the initial stage. The construction of large-scale transport infrastructure is the city's responsibility. This can also be done in partnership with investors through public-private partnerships, but the primary burden falls on the authorities.
In the implementation of all types of projects, it is important to consider the logistics within the new territory and integrate its transport load into the existing city transport network, taking into account the network's development. The city's role in this is very significant, as it is the city that shapes the philosophy of transport development, and its task is to create conditions so that this philosophy is not violated.
How to Avoid Losing Authenticity During Territorial Development?
Many Tashkent residents fear that their city will be replaced by a new Dubai and the capital will lose its authenticity. To avoid losing the "soul of the city," it is important to formulate the grand idea correctly. If preserving authenticity is one of the components of this philosophy, it is the responsibility of government bodies to ensure it.
A good example here could be the "Samarkand City" project, in which Commonwealth Partnership participated in the business plan development: the first version of the concept was not implemented due to UNESCO restrictions.
For instance, a plot of land in a former industrial area near the city's historical center was planned to be prepared for the SCO summit. However, the regulator deemed it a threat to the city's authenticity, and the authorities responsible for its overall appearance rejected the project initiators. As a result, the Silk Road Samarkand tourist and business hub was built elsewhere.
Government bodies responsible for the city's architectural appearance and the preservation of historical heritage must test proposed projects for all possible risks, including public perception. All cities have projects that do not fit the overall landscape. However, there are also examples where old and new architecture blend very organically. One such example is the redevelopment projects in London, where both developers and regulatory bodies demonstrate artistic taste.
Does the Government of Uzbekistan Have a Grand Idea for Territorial Development?
As consultants, Commonwealth Partnership observes that the government of Uzbekistan has a philosophy of territorial development. It is a demonstration of the capabilities of Central Asia's fastest-growing economy, a demonstration of support for local businesses, and openness to the world and international business.
The administration is working to attract investors. This task is handled by a specially formed team that helps local companies develop and expand investment projects, and international investors enter the market.
The results of this work are already noticeable. Dozens of special economic zones, offering preferences for investors, contribute to the country's economic development.
However, some legal and urban planning gaps still reduce the market's attractiveness to investors. For example, external developers note that the land allocation procedure is not structured and seems to vary from region to region. Investors are unclear about parameters such as maximum permissible height, building density, social infrastructure requirements (construction of schools, kindergartens, green zones, etc.), the conversion of permitted land use, and others. The government's task is to resolve these issues.
On Classic Territorial Development Mistakes and Problem Solving
In large territorial development projects, residential, business, and recreational zones are sometimes strictly separated. As a result of such rigid zoning, the residential area becomes deserted on weekdays, while business centers are empty on weekends and evenings. This can reduce comfort levels and sometimes lead to increased crime.
Examples of such mistakes can be found in many projects that eventually became successful due to the creation of a comfortable urban environment. For instance, the Lujiazui area in Shanghai began to be developed as a major business center. When the project management company noticed that nothing happened in the area on weekends, they opened shops, observation decks, created pedestrian zones, and entertainment facilities, thus rectifying the imbalance.
A similar scenario was observed in Lyon, France, after the construction of the high-speed Paris-Marseille-Lyon railway. The travel time from Paris to Lyon became only 30-40 minutes. This prompted some companies renting offices in the capital to relocate to Lyon, where rental costs were lower. Gradually, the area near the station transformed into a business hub, leading to increased demand for housing and related infrastructure, which became insufficient. The city administration began developing a multifunctional zone—entertainment, housing, retail—to ensure the environment was comfortable at all times.
Against this backdrop, the concept of the so-called "15-minute city," where residents can meet their daily needs within walking distance of their home or workplace, is highly relevant.
Tashkent has excellent potential for creating such an urban model. There are many streets that can become commercial and pedestrian. At the same time, the city is expanding, leading to the development of public transport, which in turn expands the city's boundaries. We see that developers building large territories in stages consider social, entertainment, and retail infrastructure, meaning they recognize that the population must be provided with services within walking distance.
How to Maintain Balance and Develop Not Just the Capital?
Residents of non-capital cities in many CIS countries have certain grievances towards capitals, where more money is invested than in the regions. It is important to understand that the rapid development of capitals is an absolutely normal process because they concentrate a large number of people, labor, and potential consumers of services. Investors are initially interested in entering a region that offers these factors.
However, it is crucial for the leadership of regions and the country to ensure the balanced development of other cities. This is partly achieved through the creation of special economic zones, of which there are currently 26 in Uzbekistan. The largest of these is the Navoi region. The preferences for businesses operating in these zones create jobs, attract people, who in turn demand the creation of additional services: retail, housing, hotels, etc.
The country's government has now set a goal to develop tourism in regions beyond the traditional popular destinations. This will create additional potential for investors and consumers. Local authorities are already beginning to take steps towards the balanced development of their regions.
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