Briefly about the main thing
Kazakhstan is located in the very center of Eurasia, south of the Ural Mountains. A significant part of it belongs to Asia and a smaller part belongs to Europe. In the southwest, Kazakhstan is washed by the Caspian Sea. It borders with Russia, Turkmenistan, Uzbekistan, Kyrgyzstan and China. The capital of the state is Astana, and the largest cities include Almaty, Shymkent, Semey, Karaganda and Pavlodar. Kazakhstan has an impressive territory that stretches for more than 2,700 km from the West Siberian Plain to the Tien Shan.
Kazakhstan has a sharply continental climate, and, as in any other large state, there is a noticeable temperature difference in the north and in the south. So, in winter in the north it ranges from -18 C, in the south to -3 C. In summer it is respectively +19 °C and +28-30 °C. The mountainous landscape provides the country with stunningly picturesque landscapes and more than 2,700 glaciers, it is permeated by rivers, the main of which are the Irtysh, Ural, Chu and Syr Darya.
Kazakhstan is a rich culture and architecture: ancient cities standing on the "Great Silk Road" from China to Europe, mausoleums, fortresses, modern museums and monuments. While this is a developing direction, but this is why it is attractive for investment, here you can get a good return on a relatively low budget.
The country's infrastructure is developing according to the growing pace of the market economy, as well as small and medium-sized businesses, which are a priority for the government. Representative offices of international companies are opening here, offices, shops, and retail areas are being built. The rental market of office space in the centers of large cities is gaining momentum. Shoppers will find large shopping malls here, where the world's leading brands are represented. Developers offer buyers a variety of commercial real estate options. Especially interesting as investments are objects located in the territories of innovative neighborhoods of entire mini-cities, for example, located in Almaty.
As for the real estate market, in the general picture of the post-Soviet space, new projects are actively emerging in Kazakhstan today that can impress even the most demanding buyer.
It is worth noting that the offer is also represented by interesting investment options with guaranteed profitability, whose indicators are currently higher than the European average and can reach up to 18% per annum. Foreign buyers still do not have the right to buy land for housing construction.
How to get there
Air Astana airline, providing passengers with the highest level of service (verified by the editorial board HomesOverseas.ru , —ed.), operates regular flights from Moscow to Astana and Almaty. The travel time to Astana is 3 hours and 25 minutes, the round-trip ticket cost is 29,000 rubles. The flight to Almaty will take 4 hours and 20 minutes and will cost travelers about 24,000 rubles. Similar conditions are provided by Aeroflot.
Kazakhstan has a developed railway branch connecting the country with many countries of the world. It is the railway that is the main means for both passenger and freight transportation.
Why Kazakhstan?
- Proximity to Russia and convenient transport links;
- Complete absence of a language barrier;
- Picturesque nature and good ecology;
- Developing cities with increasing supply in the real estate market;
- A young investment direction with good profitability;
- Still relatively affordable real estate prices.
Current situation in the real estate market
Almaty is a key city and the center of investments in Kazakhstan. The largest city in the Republic, it attracts people from all regions and smaller cities: according to official forecasts, its population will only grow. According to international experts, by 2050 75% of Kazakhstan's population will live in cities. The accelerating processes of urbanization create a constant demand for housing.
In Almaty, there is an active growth of supply in the real estate market. In the last month alone, six new projects have appeared here, and more than a dozen more will be launched this year. Although, according to the Statistics Committee of the Republic of Kazakhstan, the pace of commissioning of new housing has decreased in the first two months, experts predict their recovery during this year.
The demand for real estate in Kazakhstan is at a high level, although according to the results of the first quarter of 2018, in comparison with last year's indicators, there is a decrease in the volume of transactions by about 15%. Experts note that this situation is quite "healthy" and indicates a market adjustment: after a sharp increase in demand in 2016-2017, associated with a change in the tenge exchange rate and devaluation expectations of the population, there is currently a logical decline in the number of transactions. At the same time, in general, the exchange rate of the local currency is considered stable. In March 2018, the position of tenge (KZT) slightly strengthened against the dollar, besides, the currency continued its growth against the background of rising oil prices. As of April 27, 2017, 1 tenge is equivalent to 5,28 rubles, and €1 KZT 397.
The main demand of real estate buyers in Kazakhstan is for apartments. In March 2018, only 11% of the total volume of transactions accounted for private homes. «Primary » is only about 20% of demand. The new offer on the real estate market meets the current needs of buyers: location in good areas, more compact apartment areas combined with affordable price and flexible payment terms - this is the perfect balance of indicators of today's Kazakh market, creating high competitiveness. At the same time, the offer, which has been on the market for more than three years, is experiencing a decrease in demand, forcing developers to lower prices or offer discounted promotions for buyers.
In the near future, almost 1.5 million more square meters will be built in Almaty. m of housing — or more than 17,000 apartments. This was announced by the head of the city Bauyrzhan Baibek, noting that the population of the metropolis is growing every year, and therefore the construction of affordable housing is one of the priorities of the city authorities. In 2017, the pace of construction of new residential facilities in Almaty increased fourfold, 1.9 million square meters were built. m of squares for residents of the city. A promising sector is student real estate: According to the head of the city, today in Almaty more than 50,000 students need dormitories. Investors should take this fact into account.
Prices
The average cost of apartments in the primary real estate market in March 2018 was KZT 500,000 per 1 sq. m (€1250). In comparison with February, prices decreased by 1%. Compared to March 2017, the decrease was 14%. A small change in the cost is largely due to a change in the structure of the supply towards the appearance of increasingly large volumes of fairly affordable housing. Prices in the secondary market are steadily declining, striving for equilibrium and "groping for the bottom".
Experts note that the redistribution of the quality of supply in the market towards mass housing will put pressure on prices "from above", and they will decrease. Nevertheless, the cost of individual projects will increase due to the high demand for quality supply. In general, experts add, the real estate market of Kazakhstan is striving for balance, stabilization. If current conditions persist, no sharp jumps in housing prices are expected.
On average, at the end of 2017, the cost of real estate in Kazakhstan averaged: for elite properties KZT 867 511 (€2182) per 1 sq. m, for business class properties KZT 490 195 (€1232) per 1 sq. m, for housing;comfort-class» KZT 323 991 (€814) for 1 sq. m. m and for economy class real estate — KZT 212 507 (€534) per 1 sq. m.
Examples of investments
Experts note that at the moment, real estate in Almaty can become a promising investment. New complexes and residential areas correspond to European quality and in popular locations can be a source of stable income.
It is interesting to note a new trend in Almaty: developers "leave" the very center of the city to the foot of the mountains, where the air is cleanest and freshest, there are parks and reservoirs, andlife takes place in the bosom of nature. At the same time, such new areas have good transport accessibility, which is important for a comfortable life. The projects that are located in these ecologically clean areas include Esentai City, Esentai River Townhouse, Remizovka Private Residences, Gorny Residence, Orchard Residences, Alatau Hills, Art Residence.
As an example, let's consider investments in Esentai City residential project facilities. The architectural bureau Almaty Vilnius Architects (AVA) has developed a new residential space Esentai City - a city within a city that has all the necessary infrastructure for living and working. This is a completely new residential format for Almaty residents, designed by architect Rolandas Klyuchinskas. The authors of the project applied European technologies and methods in every detail: from the construction of buildings and restaurant concepts to innovative parking systems.
Esentai City has an area of 46 hectares and is divided into two parts, which are conventionally called: "for business" and "for life". The project area is comparable to the territory of the key square of Almaty streets: Dostyk-Satpayev-Seifullina-Kurmangazy. Esentai City will have restaurants, office space, state-of-the-art parking, common areas for recreation, playgrounds, a cinema, a golf course simulator, a sports and spa center and much more. Only the total area of office space will be an impressive 112,000 sq. m. About 1,500 apartments are put up for sale in the project, of which hotel-type apartments have an area of 35 sq. m, and residential apartments - from 93 to 340 sq. m.
The center of the project will be a pedestrian street, which will also turn into the longest restaurant street in the city. For investors, the developer offers a unique offer — «turnkey restaurant », already ready and «promoted » restaurant project (several to choose from). The investor-tenant signs a contract and pays the developer a monthly percentage of the profit.Apartment prices are: 35 sq.m. m with two rooms — KZT 29 750 000 (€74 558), 46 sq. m. m with two rooms — KZT 39 100 000 (€98 000), 66 sq. m. KZT 56 100 000 (€140 600). Apartments with an area of 93 sq. m. m in three-storey houses with a private roof terrace — KZT 65,100,000 (€163,150), with an area of 120 sq. m — KZT 84,000,000 (€210,520), 126 sq. m — KZT 88,200,000 (€221,000), 138 sq. m. KZT 96,600,000 (€242,000). There are many other square footage and layout options to choose from.
Kazakhstan is a new direction for investment, but when choosing the right location, a reliable developer and a profitable business scheme, investing in a new emerging market can become very profitable.
Portal HomesOverseas.ruthanks Almas Abdygapparov (Parmigiano Group) for his help in preparing the article.