How affordable is mortgage for Kazakh citizens?

Kazakhstan ranked 74th out of 109 countries in the list of mortgage affordability for the population. Saudi Arabia took the first place with the most favorable conditions for mortgage lending to citizens, reported researchers. Among the EAEU countries, the better situation is observed in Russia, which ranked 65th. All other partner countries of the Union are at lower positions than Kazakhstan. Experts said that the state has improved its housing affordability ranking after Kazakh President Kassym-Jomart Tokayev signed amendments on the early withdrawal of part of pension savings.

“All next programs, which are issued by the state, allow certain segments of the population to take advantage and purchase housing. Another question is, I think, that this development is ahead, our mortgage system is not perfect, according to figures. There is still room for improvement. There are still programs ahead that will try to involve more people who need square meters, so that they can take advantage of these programs to buy a roof over their heads,” said Larissa Stepanenko, President of the United Association of Realtors of Kazakhstan.

Kazakh residents have different opinions about the mortgage.

“I am rather biased towards mortgages. But there comes a time when you have to buy housing. Since I did not have a certain amount of money, I decided to get a mortgage. I got it for ten years, but paid it off within four years,” said one of the residents.

“I am fine with mortgages, because, it seems to me that people have no other opportunity to purchase housing. Therefore, it is very good that such a law has been adopted and that people have the opportunity to have their own homes,” added another resident.

Meanwhile, the early withdrawal of pension savings and their use by Kazakh residents to improve living conditions led to a slight increase in the prices for the cherished apartments last month. The price for one square meter of the new real estate grew by 3.8 percent. Secondary housing has risen in price by just over 7 percent. However, the rush demand and artificially increased prices will soon return to their previous figures, experts said.