ASTANA — Kazakhstan’s construction industry continues to strengthen its role as a key driver of economic diversification, attracting 3.8 trillion tenge (US$7.6 billion) in housing investment, most of it private, while accelerating urban renewal, improving living standards, and modernizing utilities infrastructure. Consistent government policy, institutional reforms, and digitalization have elevated the sector to a new stage of sustainable development.
Photo credit: Shutterstock
Housing renewal
Kazakhstan’s housing stock currently comprises around 59,000 apartment buildings, of which more than 63% are assessed as being in satisfactory condition. Capital repairs and renovations are carried out systematically, reported the Kazakh Ministry of Industry and Construction on Feb. 4.
Under the Housing and Utilities Infrastructure Development Concept for 2023-2029, budget requests totaling 20.7 billion tenge (US$41.6 million) have been allocated for capital repairs to 363 apartment buildings in 2026-2028. Since 2020, 1,015 buildings have been overhauled through preferential 0.1% budget loans to local executive bodies, reducing the share of housing requiring major repairs from 33.1% to 28.8%.
Renovation programs are also reshaping urban areas. By the end of 2025, 79 dilapidated buildings will be demolished, enabling more than 2,000 families to move into new housing and supporting the renewal of densely built neighborhoods.
Housing development and affordability
The government continues to stimulate housing construction through a mix of rental and mortgage-based programs. In recent years, 14,500 rental apartments for citizens on housing waiting lists were purchased for 217.8 billion tenge (US$438.1 million), while 14,100 apartments were built or acquired through mortgage financing for 140.2 billion tenge (US$282 million).
Mortgage programs have become a major growth driver. More than 8,600 loans totaling 233 billion tenge (US$468.7 million) were issued under programs. This year, the government plans to continue repurchasing local executive body securities worth 155 billion tenge (US$311.8 million) and issue over 12,000 additional preferential mortgage loans.
New approaches to housing registration and distribution
A key institutional reform was granting Otbasy Bank the status of a national development institution, transferring to it the functions of registering citizens in need of housing and distributing rental units. As of today, around 951,000 citizens are registered in the unified system.
Legislative amendments have also enabled the privatization of previously allocated rental housing. In 2025 alone, more than 15,000 families exercised this right, with approximately 9,000 receiving housing free of charge.
Stable construction growth
Housing construction has exceeded planned targets for the third consecutive year. In 2025, against a target of 19.2 million square meters, 20.1 million square meters of housing or 185,800 units were commissioned.
Investment in housing construction reached 3.8 trillion tenge (US$7.6 billion), including 3.5 trillion tenge (US$7 billion) in private capital, underscoring strong investor confidence in government policy and market stability.
Transparency in shared construction
Reforms in shared construction have eliminated shadow schemes and significantly strengthened the protection of citizens’ rights. New legislative norms have created equal conditions for responsible developers, supported by digital monitoring tools.
Utilities infrastructure modernization
Large-scale investments continue in water supply and sanitation systems. In 2025, 242 billion tenge (US$486.8 million) was allocated for these purposes, reducing depreciation levels by 38% in water supply networks and 54% in sanitation systems.
The national project for the modernization of energy and utilities infrastructure aims to attract 1.9 trillion tenge (US$3.8 billion) in investment, modernize thousands of kilometers of utility networks, and build or reconstruct 45 wastewater treatment facilities.
Digitalization and the new construction code
The new Construction Code has laid the groundwork for systemic sector renewal. It tightens quality standards, extends warranty periods, and introduces unified digital approaches across the entire life cycle of construction projects.
Since January, the unified construction portal has been operational, offering a one-stop digital platform that ensures transparency and streamlined interaction among all construction stakeholders.
