In 2015-2016 the residential districts “8 March” and “Gazha” in Ashgabat, which had been sporadically built in the Soviet times, were demolished.
Prior to demolition, the residents had been informed that alternative accommodation would be provided to those who had official residence registration.
It also turned out that officials had extorted bribes which ranged from $1,000 to $10,000, to obtain appropriate accommodation depending on conditions and requests of the residents of demolished houses.
Those inhabitants of demolished houses without any residence registration were not provided with compensation by the local authorities.Representatives of the khyakimlik’s office said that a townhouse village would be built outside the city where residents would be offered to buy property and obtain a concessional mortgage at the rate of 1% for 30 years. 10% of the cottage value was collected as downpayment from those residents who accepted the offer.
On average, a house in the new residential area would cost $108 thousand to those who had been deprived of their property. Thus, 10% translates into about $11 thousand. This amount had to be transferred to the bank account of the municipal khyakimlik’s office.
Many agreed with the terms of the offer since the amount needed to be paid at the official rate of 3,5 manats per US dollar whereas at the “black market” the manat value had plummeted throughout 2016 (the “black market” dollar exchange rate skyrocketed from 4,5 to 8 manats).
This implied that they could purchase a house at half the cost.
Moreover, the concessional mortgage for the purchase of pre-owned property is not provided in Ashgabat and the entire amount needed to be paid upfront. Therefore, the offer appeared quite attractive.
At that time, the khyakimlik’s office gave assurances that the houses would be built “shortly” but so far the construction works have not been launched.
For over two years the residents have been urged to stay with relatives or to rent accommodation.The cheapest apartments are located in the remaining part of Choganly village where landlords charge a rental fee of 400 manats per month per household.
Enterprising landlords built temporary barracks in the yards, without any basic conveniences, which accommodate 6 to 7 families.
The residents have repeatedly contacted the Ashgabat khyakimlik’s office with regard to housing which the authorities had promised to provide, but to no avail. Mr Khanov, the head of the housing recording and distribution department, is no longer accepting visitors filing complaints about living conditions.
Let us recall that after the privately owned houses had been knocked down, elite apartment blocks were built in “Gazha” district in Ashgabat.Multi-storey apartment blocks, shopping centres and cottages were built there.
A large-scale business and shopping and entertainment centre is currently under construction.