Real estate prices may rise in Kazakhstan

Housing prices in Kazakhstan may rise in the next few years. Experts attribute such a disappointing forecast to instability in the market for the production and sale of building materials. According to them, at present, many companies are already reconsidering their plans and volumes of construction. The dollar fluctuations and the sanctions imposed on neighboring Russia also worsen the situation, in which not only buyers, but also businesspeople lose, Talgat Yergaliyev, Chairperson of the country’s Builders’ Union, said. The association includes about 1,200 companies involved in the industry.

“In the next two or three years, the cost of building materials may rise again, along with this, housing prices will also rise. We need to stabilize the cost of building materials. Then the builders can count on their profit too. After all, it is also important for entrepreneurs to benefit from their activities, whether it is a commercial construction or a private one. The same goes for manufacturers,” said Talgat Yergaliyev, Chairperson of the Builders’ Union of Kazakhstan.

Crisis is the time of opportunities. According to Yergaliyev, it is necessary to focus on increasing the share of local content in the construction industry. This will give impetus to the development of the entire economy.

“First, we need programs that work, we need funding at the state level, which should be directed to the development of domestic production. At the moment, we do not have such programs. In the current economic situation, it is necessary to develop the construction industry, create various programs to support enterprises. We need bricks, cement, reinforced concrete structures. So far, we are producing metal fittings, angle irons, sheets. I think that the opening of production facilities for such construction products will create a competitive environment and solve several issues in the construction industry all at once,” added Yergaliyev.

 

Translation by Assem Zhanmukhanova and Saule Mukhamejanova

Editing by Galiya Khassenkhanova