Kazakhstan spends more than $5.3 billion to improve housing in last two years

ASTANA – Approximately two trillion tenge (US$5,332,054,000) was invested in housing through the Nurly Zher housing programme over the past two years, with 5.5 tenge (US$0.02) of private investment attracted for every 1 tenge (US$0.0027) of public funds, reports Primeminister.kz.

Photo credit: primeminister.kz.

Approximately 354.4 billion tenge (US$840,864,915) and 1.73 trillion tenge (US$4,612,226,710) of private funds were invested in housing in 2017 and 2018, respectively.

Since December 2016, the Nurly Zher programme has provided housing to 197,573 families and aims to improve housing availability for 1.5 million families in the next 15 years. The programme centres on increasing mortgage loan availability, setting up a credit system for housing, creating a rental housing fund for socially vulnerable groups, developing individual housing construction, stimulating private housing construction and implementing previously adopted public housing programmes. Citizens, developers and second-tier banks are provided with financing and subsidies.

According to the Kazakh Ministry of Industry and Infrastructure Development, 22.16 million square metres of housing was commissioned in the past two years. Last year alone, 11 million square metres of housing was commissioned, which is 96,731 houses.

Overall, an increase in the volume of commissioned housing was observed throughout the two years for all regions. This year, more than 13 million square metres of housing will be commissioned, which is more than 100,000 houses.

Further measures on developing the housing market include providing more accessible bank loans through Damu Entrepreneurship Development Fund. Banks received 84 applications from private developers for 72.5 billion tenge (US$193,286,957.50), of which 51 contracts were set up for subsidised loans of 45.2 billion tenge (US$120,504,420.40). An additional 152 billion tenge (US$405,236,104) of subsidised loans will be issued by 2020.

Leaders in housing construction since 2016 include Astana with 4.7 million square metres of housing, Almaty with 2.6 million square metres, the Mangistau region with 1.8 million square metres, the Atyrau region with 1.3 million square metres, the Almaty region with 1.3 million square metres and the Kyzylorda region with 1.2 million square metres. The largest volume of housing construction was also observed in Astana with 22,565 apartments, Almaty with 15,020 apartments, the Mangistau region with 8,367 apartments, the Aktobe region with 5,941 apartments and the Almaty region with 4,824 apartments.