Recently the National Statistics Bureau QazStat published price indices for the housing market in Kazakhstan. The editorial team of FBRK decided to investigate the state of the real estate market in the largest region of Kazakhstan – the Karaganda Region.
As reported by Toppress, citing data from the National Statistics Bureau, the average price on the housing market in Karaganda in April 2024 was 367,419 tenge per 1 sqm. Meanwhile, the average price for new housing across the country during the same period was 484,626 tenge per 1 sqm.
Regarding the indicator characterising changes in the price level, QazStat reports that the overall price index for new housing in Karaganda in January-April 2024 compared to the same period in 2023 was 99.9%.
It is known that the housing market is increasing in price due to rising demand for residential property. Meanwhile, the provision of housing for the population in Kazakhstan is at an insufficient level.
According to data from open sources, this year not only the Karaganda Region saw a decrease in housing commissioning, but also the Akmola, Aktobe, Pavlodar, Atyrau, Mangystau regions, the Ulytau region, as well as Almaty city.
In January-February 2024, 88.4 thousand sq. m of housing were commissioned in the Karaganda Region, which is 1.6% less than in the same period in 2023. One of the main reasons for the slowdown in housing commissioning is cited as a 'narrow developer market'.
In other words, the reason lies in the shortage of organisations involved in the construction of new property developments. The region lacks the largest construction companies in Kazakhstan: BI Group, BAZIS-A, Sensata Group, Qazaq Stroy, RAMS Qazaqstan, Tumar Group and many others.
Furthermore, there are problems with the activities of existing 'developers'. In February 2024, there were 15 builders in the region convicted of illegally raising funds from shareholders, as well as 11 sites in January 2024 operating without the full set of required documents.
However, potential buyers of property in Karaganda, aside from the relatively low prices, may be encouraged by the plans of the regional akimat for the construction of new housing. In 2024, the commissioning of 450 thousand sq. m of residential property is expected.
According to the Department of Construction, Architecture and Urban Planning of the Karaganda Region, the commissioning of eight mortgage buildings is planned in Karaganda city, Balkhash city and Temirtau city. It is noted that more than 450 apartments will be allocated to those on the waiting list who have savings in 'Otbasy Bank'.