Trends in housing market: apartment prices grow

Demand breeds supply. Housing prices in Kazakhstan continue to grow. The price for apartments in new buildings increased by 0.5 percent in March. Comfortable apartments went up in price by 2 percent.

According to experts, the trend will continue, and housing prices will keep growing. Today the cost of one square meter in Kazakhstan starts from 220,000 tenge (US$508) and exceeds one million (US$2,309). It all depends on the class of the acquired living space. There is an explanation: imported materials are becoming more expensive and it is not profitable for property developers to sell at the same prices.

“In terms of building materials: rebar price increased by 64 percent, it occupies 10-12 percent of the total construction volume. Of course, this will play a role in the cost per square meter. This is only a rebar, but all building materials have risen in price, including heat-insulating materials, ceramics and others. Everything that we import,” said Talgat Yergaliyev, Chairperson of Kazakhstan’s Builders’ Union.

The housing price was also influenced by the possibility of withdrawing pension savings provided by the government. Many Kazakh citizens received funds for the down payment and, as expected, began buying apartments.

“Many people have now begun to actively acquire apartments in new buildings and secondary residences. The market is active now, because we also expect a new mortgage in May. This is a mortgage for militaries. This happens every year. Prices are adequate in the market, but a little higher from property developers themselves,” added real estate agent Ruslan Yusupov.

Another new mortgage for women was launched in Kazakhstan today. According to the “Otbasy Bank”, the program will allow to purchase housing for those women whose family income does not exceed 320,000 tenge (US$739).

The new program will allow Kazakh women to purchase housing on favorable terms with a 15 percent down payment or with 0 tenge savings on the Bank’s deposit! The program’s lending rate will be 12 percent with the transition to a housing loan, meaning a reduction of the interest rate to 3.5 percent per annum. Moreover, confirmation of absence of housing is not required.

Real estate market experts advise choosing a trusted developer and not delaying the purchase of the long-awaited square meters. Otherwise, you will have to buy at a higher price, as they grow exponentially. The main thing is to explore the possibilities. Experts state that many residents just do not know about existing programs.