Economists advise investing in real estate amidst COVID-19 crisis
The global pandemic and decline in oil prices affect the well-being of the Kazakh citizens one way or another. The time has come for those who have any savings to begin thinking about the profitable and long-term investment for their future. Some Kazakh citizens are starting to invest their savings in stocks and valuable bonds, but what should do those who do not know much about the stock market? Experts believe that to date real estate is the most profitable and reliable asset.
“Those who bought property five or ten years ago, unfortunately, lost in value, because the exchange rate was different back then. However, people who are investing their money in real estate today, will receive up to 40 percent of profit already in five or six years,” economists said.
The average price of real estate in different regions of Kazakhstan varies, so the profitability will accordingly differ. If a person is willing to purchase real estate in Aktau, then a one-room apartment will cost him 6 million tenge (US$15,000). Pavlodar residents can purchase housing for 7 million tenge (US$17,500). The price of apartment in Atyrau, Uralsk and Taldykorgan, on average, amounts to 8 million tenge (US$20,000). The price of apartment in Karagandy and Oskemen is slightly more expensive and amounts to 9 million tenge (US$22,500). Finally, the residents of Nur-Sultan and Almaty will have to make bigger real estate investment compared to other cities of Kazakhstan, because they have the most expensive housing market in the country. On average, the apartment in the Kazakh capital will cost 13 million tenge (US$32,500) and in Almaty – 15 million tenge (US$37,500).
“The value of real estate, despite various financial fluctuations, is usually quite stable in its growth. However, when purchasing housing, it is very important to take into account the characteristics of the property: its location, as well as the experience and reputation of the developer,” real estate experts said.