The construction sector is one of the important areas of Turkmenistan’s socio-economic development. Extensive efforts are being undertaken to provide the population with modern housing, improve the architectural appearance of cities and other settlements, and build new facilities for social, commercial and industrial purposes. Various legal mechanisms are used to finance real estate construction projects in this field. One of them is shared-equity construction.

Shared-equity construction refers to a system in which a developer raises funds from equity participants to carry out construction work on residential buildings or other real estate properties. This method makes it possible to finance construction projects and allows citizens to participate in the development of properties as equity participants.

One of the principal parties involved in shared-equity construction is the developer. A developer is defined as a legal entity that attracts funds from equity participants for the construction of a building or other facility.

An equity participant, in turn, is a citizen of Turkmenistan who is at least 18 years old, permanently resides in Turkmenistan and has concluded an agreement with the developer to participate in the shared-equity construction of a property. Individuals engaged in entrepreneurial activities without establishing a legal entity may also act as equity participants.

In shared-equity construction arrangements, it is particularly important to define the rights and obligations of the parties, comply with contractual terms and ensure that construction work is carried out in accordance with the requirements of the law.