Kazakhstan, real estate prices to hold steady

Representatives of the United Association of Realtors of Kazakhstan said prices for real estate in the country will not show significant changes in 2018
Kazakhstan, real estate prices to hold steady
12 January 12:24 2018 Print This Article

“There were no seasonal price changes for several years. The price changes depend on the economic factors of demand. When considering the trends in these factors, real estate prices will not show any special changes in 2018. In Almaty, prices will remain at the same level or show a slight increase due to buyers who previously delayed the decision to purchase real estate, and also these factors will support continued positive dynamics in the number of transactions. The beginning of the functioning of the Astana International Financial Centre will also set a positive trend in the property market of Astana,” said President of the United Association of Realtors of Kazakhstan Yelena Griva.

According to her, prices will remain on the same level due to the commissioning of new state programmes and the further development of existing ones.

In 2017, Kazakh residents have observed relative stability in the market for new housing and a decline in the secondary market. In new buildings in Astana, the price was stable at a level of 318,000 tenge (US$970) per square metre. In Almaty, prices for new housing have fluctuated in the corridor of 430,000-450,000 tenge (US$1,310-1,370) per square metre.

Prices for secondary housing in 2017 in Almaty and Astana fell 5-8 percent on average, while in some regions of the country the price declined 10-11 percent. Vice President of the United Association of Realtors Nina Lukyanenko said that in 2018 the housing market will be stimulated by migration flows (of people moving to cities), financial literacy and financial security of families and other economic factors.

“The number of transactions in Kazakhstan for the period from January to November 2017 compared to the same period in 2016 rose 28.6 percent. Is it due to increased solvency among the population? I don’t think so. The first reason for such growth in deals is calmness in the hearts of those who planned to improve their living conditions. For this period of time, many watched the exchange rates and did not hurry to invest in apartments and houses, not fully understanding what will happen to the cost of different currencies,” said Lukyanenko about the trends of 2017.

In 2018, in her opinion, demand will remain at a high level, but it is much more important for this demand to be solvent. Only if demand is solvent will there be further positive movement. Small apartments purchased for personal use will be in demand.

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