Two million sq.m of affordable housing to be built in Kazakhstan in 3-4 years

Photo: Two million sq.m of affordable housing to be built in Kazakhstan in 3-4 years / Business News

Samruk-Kazyna Sovereign Wealth Fund in cooperation with private partners is ready to construct 2 million square meters of housing within 3-4 years, the Fund's Deputy Chairman Kuandyk Bishimbayev told Tengrinews.kz.

According to the top-manager, there is currently a slight raise of prices at the real estate market. Owing to the prices rise and striving to prevent deficiency of primary housing, the Government is preparing a new program of residential construction that will continue the anti-crisis part of "Rented housing" program that is close to completion stage right now. Almost all problematic housing construction sites of 2008-2010 period have already been completed or to be completed by the end of 2011. Along with the shortages of the previous program the new program will consider the balance of demand and offer in the real estate market.

"What have we now? We see that offer of new housing has decreased quite sharply. Anything offered in the market right now is part of completion of the anti-crisis program. Private sector has significantly decreased its investments. Problems in banking sector have also influenced the real estate sector, of course," Kuandyk Bishimbayev said, speaking about the state of construction industry in Kazakhstan.

Samruk-Kazyna Sovereign Wealth Fund will most probably be the program's operator. "The purpose is to construct about 2 million square meters of affordable housing within three-four years," the Fund's Deputy Chairman shared the plans.

According to Bishimbayev, these apartments will be aimed both for rent and sale. Besides, it will be the first time when housing will be actively constructed in the regions (rather than In major cities). The new approach will help attract investments to localeconomizes. But construction will be run only under a state-private partnership. Only if private partners will be ready to invest money on a parity basis, the state will be able to take part in construction through Samruk-Kazyna Sovereign Wealth Fund. This would serve to minimize the business risks and leave a space for private initiative. Samruk-Kazyna Deputy Chairman noted that construction companies have demonstrated high interest to this program.

"Construction companies are very interested in this program, consumers are waiting for this program, as we are setting very clear price limitations. We are talking about construction of affordable housing and affordability is certainly ensured through price," Kuandyk Bishimbayev told about the new aspect of the social-oriented policy of Samruk-Kazyna.

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