Real estate market cheapens in Astana

Real estate sellers reduce prices and encourage Kazakhstani people to actively buy.

In January-May 2017, the cost of new housing as compared to the same period of 2016 has decreased by 3.2 percent. Over the year the resale prices have fallen by 3.1pct and 2.9pct for well-maintained and elite housing respectively. The resale cost of ill-equipped housing has not changed much as it decreased by only 0.1% within the year. This reduction in the housing market has occurred for the first time since early 2013. In this regard, the number of deals for apartment purchase and sale in Kazakhstan has grown by 30 percent this year .

For the first five months of 2017, nearly 63,000 deals for purchase of apartments have been made in Kazakhstan (14,400 more than a year before). This year highest sales growth was in North-Kazakhstan (57pct), Mangistau (53pct) and East Kazakhstan regions (44pct). A weak increase in deal number (as compared to other regions), was in South Kazakhstan (only 3pct), Almaty region (6pct) and Zhambyl region (12pct).

In May this year, the average price per square meter in new buildings in Kazakhstan was 249,000 tenge. Over the year (in comparison with the prices in May 2016), the greatest price reduction has beeb recorded in the northern regions. In Pavlodar, the cost of new housing decreased by 13.9pct (-KZT30,900), in Kokshetau by 11.8pct (-KZT27,100) and in Astana by 9.8pct (-KZT34,500).

A sharp rise in prices for new housing was observed in Petropavlovsk, where еру prices jumped 16.6 percent (+KZT26,400) in May 2017. In Almaty, new housing also continued to appreciate, +10.6%. The prices for flats in new buildings in Semey over the year have increased by 10pct, or by KZT14,100.

As to the secondary housing market (well-maintained), in May the average price for a square meter in the country was KZT187,900. This is 2.1 percent less than the price in May 2016.

Most significant price fall for such housing over the year has been in Kokshetau (-11.7 percent, by 23,100 tenge), Aktau (-7.9% or by 27,100 tenge) and Pavlodar (-2.4pct or by 12,600 tenge).

At the same time, the growth in prices for secondary well-maintained housing during the year has been recorded only in Almaty city +5.8pct (by 18,600 tenge), Uralsk +1.3pct (by 3,000 tenge) and Shymkent +1pct (by 1,600 tenge).