Kazakhstan's real estate market provides a plethora of opportunities for foreign investors, owing to the country's unique land ownership system, state housing policies, and property development incentives. This article will provide an overview of the key aspects of Kazakhstan's real estate market, focusing on land ownership, state housing policies, financing, and the advantages of investing in the country's thriving property sector.

Land Ownership System and Foreign Companies' Entry Requirements

Kazakhstan's land ownership system distinguishes between state and non-state, national and foreign, individuals and legal persons, permanent and temporary, and primary and secondary users. Foreigners and foreign legal entities are permitted to own land plots designated for industrial and non-industrial development, including residential buildings and complexes.

However, agricultural land and forest cultivation are subject to restrictions because they cannot be privately owned by foreigners, stateless people, or foreign non-state legal entities. Furthermore, foreign land users cannot obtain the right to permanent land use.

State Housing Policies and Incentives

Kazakhstan's housing construction sector is expanding, owing to increased mortgage lending, urbanization, and rising income levels. The "Nurly Zher" State Program aims to improve housing availability and comfort while also developing housing infrastructure. The program aims to boost housing construction and create a more balanced housing market.

Citizens can purchase housing in primary and secondary markets using a variety of mortgage lending instruments. The government also promotes mass construction areas and encourages private investment in credit housing and individual housing construction.

Commercial Housing Pre-Sale System and State Control

The Kazakhstan Housing Company's housing construction guarantee program reduces risks for investors while improving the quality of new buildings at the state level. Construction firms must meet specific criteria, such as having at least three years of successful construction experience and having maintained a positive capital over the previous two years.

Furthermore, the process for issuing licenses for architecture, urban planning, and construction activities has been streamlined, with the service period reduced from 15 working days to 20-40 minutes.

Land Transfer System

On a reimbursable basis, land plots can be transferred from state ownership to private ownership. Land for the construction of public social facilities can be transferred for free, with the land then being transferred to communal property for free as well.
Banks and other financial institutions can lend to borrowers for housing purchases under housing construction projects secured by a subsidiary of Baiterek NMH JSC, Zhilstroysberbank of Kazakhstan JSC (ZHSSBK). The “Nurly Zher” State Program also reduces construction costs by subsidizing interest rates on bank loans for private developers.

Target Cities' Housing Prices and Cost Ranges

The average actual cost of constructing one square meter of residential space in cities has risen by 13% year on year. Shymkent, Almaty, and the Atyrau region have the highest costs, while East Kazakhstan, North Kazakhstan, the Kyzylorda region, and Astana have the lowest.

Investment Incentives and State Cooperation Benefits

Measures to stimulate housing construction include providing engineering communication to areas of mass housing development, lowering interest rates on loans made to private developers by second-tier banks, and offering project financing for housing investment projects through international financial organizations.

Finally, due to its favorable land ownership system, state housing policies, and attractive incentives, Kazakhstan's real estate market presents numerous opportunities for investors who can capitalize on Kazakhstan's growing real estate market by understanding the regulations and benefits of investing in the country's property sector.