In 2013 Kazakhstan real estate market will grow by 10%

English

In 2012 the Kazakhstan real estate market showed differently directed pace and grew by 5%. Just like in the pre-crisis period, such large cities with high level of employment of the population as Astana, Almaty and Atyrau were among the leaders in the number of deals. Specialists of the Kazakhstan Real Estate Federation noted that the highest buying activity was observed in Astana, while in Almaty the market experienced fluctuations.

Aida Yesmagambetova, Vice President, Kazakhstan Real Estate Federation:
- In 2012 people were expecting a new wave of crisis. The press reported that the world is expecting the third wave of the crisis, which will be worse than the first one. Then there was the crisis in the European Union and political instability. I believe that people were waiting for something
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The secondary housing with small areas, such as one or two-roomed flats are the most dynamic sector. During 11 months of 2012 the price for one square metre in this segment was about 1800-1900 US dollars.

Aida Yesmagambetova, Vice President, Kazakhstan Real Estate Federation:
- Small flats, such as one or two roomed flats on the secondary market, are always in demand. This sector shows good paces of development. These kinds of flats are sold, bought and rented. Almaty is the largest city of Kazakhstan, which welcomes large inflow of people from regions, including students, specialists and graduates, who are looking for a job. Everyone is looking for better living conditions
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Primary and high-class housing didn’t see any changes in 2012. The amount of deals in this segment has remained stable since 2010. It happens because of the high prices affordable only to wealthy citizens.

Aida Yesmagambetova, Vice President, Kazakhstan Real Estate Federation:
- Almaty has a separate segment of high class housing, which costs more. The average price here is 3 thousand US dollars for 1 square metre. In general, the price here varies from 2800 to 3500 US dollars for 1 square metre
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Letting agencies are a business, which is closely connected with the real estate for living. This kind of services are very popular among young families, who have just started saving for housing as well as among students coming from other cities.

Aida Yesmagambetova, Vice President, Kazakhstan Real Estate Federation:
- This business remains in demand. There will always be a demand for the rent of one and two-roomed flats. Prices in this segment were adapted for the time of the crisis. At one time the rent cost 10 thousand US dollars and the rent for a one-roomed flat was 1.5 thousand US dollars. Of course, we do not have such prices today but this business makes sense
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Commercial real estate was also among the leaders in 2012. The majority of offers fell at office buildings and the small amount of offers was observed in the sector of empty spaces. Trading areas also remain popular. People also rent plants and warehouses. The Kazakhstan Statistics Agency reports that in general the growth in prices for commercial areas exceeded 5%. A 15-22% increase took place in the segment of such service facilities as beauty salons, gyms and servicing stations. On the other hand, prices for the rent of cafes and bars decreased by 3%.

Aida Yesmagambetova, Vice President, Kazakhstan Real Estate Federation:
- In the period from 2005-2006 the city saw the construction of a large amount of business centres. People were lucky to have finished construction before the crisis. Today the market of office buildings in Almaty is oversaturated. At the same time business activity has died down during the crisis and 50% of office buildings were empty. Currently, the demand for office building is increasing, which results in the increase in prices
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Specialists believe that the Affordable Housing-2020 state-run programme will boost the real estate market in 2013. The project provides for the construction of almost 70 million square metres of housing.

Aida Yesmagambetova, Vice President, Kazakhstan Real Estate Federation:
- There is always a demand in housing. For example, high-class housing segment always have consumers but due to the high prices, the amount of consumers is small. There is a lack of inexpensive housing. I mean that there are no other alternatives apart from the state-run programme. Such housing will always be in demand
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The increase in the business activity, greater inflow of people to large cities and improvement in the quality of life of Kazakhstan residents allow analysts to talk about positive development pace of the real estate market in 2013. At the same time, experts are not talking about any sharp growth. They believe that the market will grow in the range of 10%.