Experts say real estate market trends in Kazakhstan might change

Experts say real estate market trends in Kazakhstan might change

Experts say that the situation in the real estate market in Kazakhstan is still stable despite the ongoing spread of the novel coronavirus. The epidemiological situation has made its own adjustments. There has been some sort of lull after the end of the nationwide state of emergency, but since August Kazakh residents have become more interested in housing issues and in buying their own real estate. Experts said that it is a matter of mentality. Kazakh residents are said to be programmed that everyone should have their own place, not a rented one. 

“Prices have not changed much since last year. The need to purchase your own house is absolutely necessary in our mentality. My home is my fortress, these are not just idle words, but confidence and safety,” Galina Yaroshenko, board member of the United Association of Realtors of Kazakhstan, said. 

Which apartment is better to purchase, one in a new residential building or secondary housing, depends on personal preferences and financial capabilities. Experts recommend potential buyers to take their income into account. It is also worth considering which company they will purchase the apartment from. Experts can give one piece of advice here - they should only deal with professionals. 

“Of course, we all want to buy prestigious housing in the city center. Buying an apartment in houses under construction is risky, as practice has shown. But the existing laws on cooperative housing projects and other tools have minimized these risks and investing in housing under construction is now not as dangerous as it was five years ago. My main advice would be buying real estate according to your income. As you grow financially, you will have new opportunities to expand and improve your housing,” said Serikzhan Mergenbayev, a member of the Union of Builders of Kazakhstan. 

The expert also emphasizes that today property prices may change due to several factors. Demand will be stimulated by the new opportunity of Kazakh citizens to use their pension savings to pay off a mortgage or purchase a new apartment through lending. There is also uncertainty due to a possible second wave of COVID-19. The new spike in coronavirus cases may result in the closure of borders, which in turn would inexorably lead to an increase in the cost of building materials. 

“Good news is that not everything is brought from abroad, a lot of building materials are produced in Kazakhstan, but the US Dollar exchange rate also affects the cost increase. We are fighting to ensure that the cost of each square meter does not increase. We support the demand from the population. The Head of State said that the Otbasy Bank will be established on the basis of the Housing Construction Savings Bank to solve the housing problems of the population,” Mergenbayev concluded.