Current as of August 2026
Land issues are once again at the centre of public debate. In Bishkek, the rules governing the lease of municipal land are being revised, a land amnesty is under way, legacy agreements are being reviewed, enforcement against unlawful occupation is being stepped up, and the long-term allocation of land to investors is being debated.
At first glance, these may appear to be separate processes. In practice, they form part of a single policy: the state is reasserting control over a finite national resource, closing opportunities for speculation and requiring allocated land to be used for its designated purpose. This policy deserves support. Land should not remain idle for years, be held for subsequent transfer or be used in breach of the conditions under which it was granted.
Long-Term Leases to Foreign Investors: A Lease Is Not a Sale
The most sensitive issue concerns the allocation of land to foreign investors for 49 to 50 years. In public debate, a long-term lease is often described as the sale of national territory. Legally, this is incorrect.
Under the Land Code of the Kyrgyz Republic, land may be granted for temporary use for up to 50 years. Foreign persons and entities may not acquire land plots as their own property. They may use them only under fixed-term land-use arrangements, unless otherwise expressly provided by international agreements or specific provisions of national law.
Under a lease:
- ownership of the land does not pass to the investor;
- the plot remains in state or municipal ownership;
- the tenant must use it for its designated purpose;
- development conditions, investment commitments and grounds for termination are determined by law and the lease agreement;
- the plot does not automatically become the tenant's property when the lease expires.
The length of a lease does not, in itself, imply any loss of state sovereignty. The real issue lies not in the figure of 49 years as such, but in the quality of project selection, the terms of the agreements and the enforcement of contractual obligations.
Kyrgyzstan has seen cases where plots were allocated for stated investment purposes but remained undeveloped for extended periods. Land-use rights became assets in their own right: they were held in anticipation of an increase in value, were subject to attempted transfers, or were used to raise financing without the underlying project actually being implemented. It is precisely this practice that creates the impression that long-term leases are being used as a concealed form of disposing of land.
The 10-25-49-Year Model Has Not Yet Become a General Rule.
In response to criticism, the authorities have proposed a new approach to future investment projects. Minister of Justice Ayaz Baetov publicly outlined a phased model:
- an initial lease of up to 10 years;
- an extension to 25 years once investment and construction have commenced;
- an extension to 49 years only after all contractual obligations have been fulfilled.
As of August 2026, this approach remains under consideration. It should not be presented as a general rule already in force.
The rationale is clear: investors should earn long-term land-use rights through performance rather than receive them in advance. The proposed model, however, has a weakness. For capital-intensive projects, particularly in energy, industry, tourism and infrastructure, an initial ten-year term may not be sufficient to secure project financing. Banks and institutional investors require predictability throughout the investment payback period.
The phased model should therefore be tied to measurable project milestones, including the amount invested, the construction schedule, the commissioning of the facility, job creation, and the fulfilment of infrastructure commitments. This would allow the state to avoid granting long-term rights upfront while giving a bona fide investor a clear understanding from the outset of the conditions for retaining and extending those rights.
New Rules for Leasing Municipal Land in Bishkek
On 30 June 2026, the Bishkek City Council approved new Regulations on the Allocation of Land Plots for Fixed-Term Use under Lease Arrangements.
The document consolidates the rules governing the allocation of municipal land, standard-form agreements, procedural requirements and the calculation of rent. Its principal changes include the following:
- tenants may not transfer land-use rights to third parties before developing the plot for its designated purpose;
- requirements governing the fulfilment of investment and construction commitments are strengthened;
- security for contractual obligations is required in cases involving a subsequent purchase of the land;
- the grounds for monitoring land use and terminating rights in the event of a breach are expanded.
The main objective is clear: a plot should be allocated to the party that will develop it, not to an intermediary seeking to profit from the transfer of the land-use right.
The prohibition on transferring rights before a plot is developed is a justified anti-speculation measure. In applying it, however, it is important to distinguish between the speculative resale of rights and legitimate transactions required for project financing, the transfer of a plot to a project company, or an agreed restructuring of an investment project.
Purchase of Land Beneath Apartment Buildings
A separate policy concerns plots previously leased for the construction of apartment buildings. The procedure for purchasing such plots was approved by Resolution No. 95 of the Bishkek City Council dated 31 March 2026.
To encourage formalisation of ownership, the Mayor's Office introduced reduced coefficients for calculating the purchase price:
- until 31 December 2026: 0.5, reducing the calculated price by 50 per cent;
- in 2027: 0.6;
- in 2028: 0.8.
Until 1 October 2026, a coefficient of 0.4 applies to plots larger than one hectare. The applicable terms and list of required documents are available on the official website of the Bishkek Mayor's Office.
This measure makes it possible to bring the land and the building under a single legal regime, reduce the number of long-running lease relationships and generate revenue for the municipal budget. Purchase is not automatic; it requires a commission decision, settlement of any outstanding debt, payment of the purchase price, and state registration of ownership.
Land Amnesty: Formalising Rights, Not Permission to Build Anywhere
The active phase of the land amnesty continues in Bishkek. According to published figures, residents of the capital have submitted more than 16,600 applications. The deadline for completing their review and formalising the relevant documents has been extended to 15 December 2026. The process is governed by a Resolution of the Cabinet of Ministers and the revised Regulations on the Conduct of the Land Amnesty.
The land amnesty is often understood as an opportunity to legalise any land that has been occupied in practice. This is incorrect. The amnesty does not automatically apply to areas where recognition of private rights would pose a safety risk or conflict with the public interest.
Restrictions may apply to plots located:
- within sanitary protection zones and other protected areas;
- beneath power lines or over utility networks;
- within parks, public gardens and other public spaces;
- within water protection zones;
- on land required for roads, wastewater treatment facilities and other infrastructure.
The land amnesty and action against unlawful occupation are not contradictory. The amnesty addresses a longstanding social and legal problem regarding properties that meet the established criteria. At the same time, new land seizures must be prevented without creating an expectation that another legalisation campaign will follow.
Recovery of Undeveloped and Unlawfully Allocated Land
At the same time, the Mayor's Office and the prosecution authorities are reviewing earlier decisions and agreements. Land may be recovered on grounds including prolonged non-use, use contrary to its designated purpose, unlawful allocation or failure to comply with lease conditions.
This practice is not limited to Bishkek. In April 2026, for example, the Prosecutor's Office reported the recovery of a 0.63-hectare plot for municipal ownership in the capital. Similar cases have been reported in other regions of the country.
Recovering land that was unlawfully alienated or left unused for years serves the public interest. The state not only has the right but also the duty to protect state and municipal property. At the same time, termination of a valid agreement must be based on an established breach and carried out in accordance with the procedure prescribed by law.
Bona fide tenants who honour their agreements, invest in their projects and comply with the designated use of the land should receive legal protection and predictable operating conditions. A clear distinction between a bona fide investor and a party merely holding an undeveloped plot is essential to combining effective state control with investor confidence.
Why Land Disputes Will Continue
Individual disputes involving kiosks, markets, land around apartment buildings and commercial properties reflect a deeper problem. For many years, formal agreements, temporary permits, de facto occupation, questionable decisions by public officials and weak enforcement of designated land use coexisted within the city.
When the Mayor's Office clears an area for a public garden, road or utility infrastructure, the public purpose may be legitimate. That purpose does not, however, remove the need to verify the user's rights, follow the proper termination procedure, consider any entitlement to compensation and allow a reasonable period for vacating the site.
For the reform to be sustainable, the rules must be applied consistently. Where plots are in comparable circumstances, the assessment of compliance and the consequences of a breach should also be comparable. This will strengthen public confidence in the policy.
What Is Needed for a Sustainable Land Policy
The state's next step should be to establish a land management regime that is not only strict but also as predictable as possible. This requires:
- a publicly accessible register of allocated plots specifying their purpose, lease term and the tenant's obligations;
- mandatory development milestones and clear consequences for failure to meet them;
- a ban on speculative transfers, with exceptions for project financing and corporate restructuring;
- uniform criteria for extending and terminating agreements;
- publication of land commission decisions and monitoring results;
- protection of bona fide tenants against arbitrary revision of previously agreed terms;
- a clear distinction between investment projects, ordinary commercial leases and land used for public purposes.
Key Takeaway
The government's current policy is justified. Undeveloped plots should not be held for years without producing any result, lease rights should not become instruments of speculation, and land that was unlawfully alienated should be returned to the state or municipalities.
A long-term lease to a foreign investor is not a sale of land. Nor should it become an unconditional right lasting for decades. An investor who builds, creates jobs and fulfils agreed commitments should receive legal protection and long-term guarantees. A party that holds a plot without a genuine project should not retain the right to it merely because it once signed a lease agreement.
The essence of the policy is simple: land must remain under state control and genuinely contribute to the country's development. This approach serves the interests of citizens, bona fide businesses and the state itself.