Housing Programme Construction to Start in 2015

ASTANA – Construction for Affordable Housing 2020, the national housing programme, will begin Jan. 1, First Deputy Prime Minister Bakytzhan Sagintayev announced at a Nov. 20 meeting of the National Coalition of Democratic Forces “Kazakhstan 2050.”

image“We are now working on a new mechanism for the sale of houses and the corresponding changes to the programme will be made in December. Starting Jan. 1, 2015 the construction of houses will begin on a new housing programme across the country,” Sagintayev said.

Regarding the financing of the new programme, the deputy prime minister explained that 35 billion tenge (US$193.6 million) will be allocated for the construction design and engineering networks purchases of rental housing. A 30-year bonded loan from Baiterek Holding, in the amount of 145 billion tenge (US$802.3 million) at a rate of 0.1 percent, will be allotted to build the homes.

“Kazakhstan Mortgage Company will be the operator of the construction programme for rental housing,” Sagintayev said.

According to Sagintayev, the total funds to be directed to rental housing construction will be about 250 billion tenge (US$1.4 billion), of which 145 billion tenge (US$802.3 million) will be designated from the National Fund. More than 29 billion tenge (US$160.5 million) has also been earmarked in 2013-2014 for the programme. The Kazakhstan Mortgage Company placed bonds in the stock market for 2017-2019 in the amount of 50 billion tenge (US$276.6 million) and another 25.8 billion tenge (US$142.7 million) will be allocated from other sources.

“With the money we plan to build one and a half million square metres of housing in the country. Now we see how much money will be spent for rental housing with subsequent purchase, and how much will go to housing without purchase. The head of state announced that new approaches to the construction of rental housing will be introduced. Housing will be provided to the public without intermediaries in a long-term lease with the option to purchase,” Sagintayev noted.

Sagintayev also reported that according to the akimats’ (governors’ and mayors’) offices, today more than 300,000 Kazakh citizens can make a claim for rental housing. Among them are 376 disabled and war veterans, 43,638 orphans and children without parental care, 130,303 socially-vulnerable individuals, 124,000 state employees, civil servants and military personnel and 1,752 who live in dangerous housing. Housing construction is also needed for young families.

According to Sagintayev, the government is working with the Kazakh Association of Builders.

“The state will build social and rental housing and make it available to the population in a long-term lease with the option to purchase. The housing that is available now requires a lot of money and a down payment and then the banks give onerous interest of about 20 percent. These programmes are for the wealthy people. We will make this programme for young families, for those who really need it,” President Nursultan Nazarbayev said at the meeting.

The President noted an additional 180 billion tenge (US$995.9 million) will be designated in2015-2016 for construction of rental housing.