The latest reports coming from Kazakhstan reveal some great news for its building and interiors industry. Housing construction across the nation enjoyed a sharp rise during 2016.
According to financial and analytics portal Finprom.kz, Central Asia’s biggest economy built as many as 89,400 new apartments throughout the last 12 months. This marks a new milestone in Kazakhstan’s residential building sector - it is the highest volume of new apartment units built in any year since Kazakhstan became independent in 1990.
Currently, government financing and assistance is gaining momentum, showing tangible results in stimulating the activity of the housing construction segment:
• The private sector is slowly becoming a bigger force in Kazakhstani construction. 10% of new homes built in Astana in 2016 was built by private developers, triple the levels previously constructed by non-government bodies.
• Government cash is already resulting in more building activity in the residential sector. January-February 2017 saw 18,000 new apartments built nationwide – an increase of 23% compared with the same period in 2016.
• Kazakhstan has some big developments in the pipeline and is ready to investment heavily in residential building projects. $4.7 billion has been allocated for further housing spending from now until 2021 – while the Nurly Zher initiative promises to be even bigger.
• The Nurly Zher programme of residential development is poised to completely change the face of Kazakhstani housing construction. It is a pledge to provide housing for 1.5 million Kazakh citizens by 2031, with mortgage rates lowered to 10% to keep prices affordable.
• Under the auspices of Nurly Zher, 664,000 10-acre sites have been earmarked as sites for new apartment blocks. 35,000 units will be for rent, while 280,000 apartments will be available to buy via the Kazakhstan Mortgage Company and Kazakhstan House Construction Savings Bank. 521,000 apartments will be set aside for private mortgage lenders.
With significant spending planned, and more building work set to hit the housing sector, residential construction is set to power Kazakhstan’s build and interiors sector throughout the next decade.
In addition, the mining industry, non-ferrous and ferrous metallurgy, machine building, small and medium-sized business and many other industries are dynamically developing in Kazakhstan. Today, more than 100 projects worth a total of 45 billion USD are included in Kazakhstan’s Industrialization Map.
GDP INDICATORS and international ratings
For a short historical period - since gaining independence in 1991, Kazakhstan’s GDP per capita has increased 16 times - from 700 USD to 12,000 USD; in 2016 GDP grew by 1%. The development of the sectors as construction, agriculture, processing industry, transport has positively affected the GDP dynamics of the Republic of Kazakhstan. The official growth forecast for 2017 - 1.9%.
Over the years of independence 150 billion USD of foreign investments were attracted to Kazakhstan, which is about 70% of the total volume of all investments attracted to Central Asia. The gold and currency reserves of the country as of June 1, 2012 amounted to about 85 billion USD, more than 50 billion dollars of which is accounted for the National Fund.
In the World Bank’s “Doing Business 2017” rating Kazakhstan took the 35th position, raising its rating by 16 points compared to “Doing Business 2016”, in which our county took the 51st position.
The World Bank highlighted the top 10 countries with a high share of reforms to improve the business climate, where Kazakhstan took the 2nd position in 7 indicators of the rating, and also entered the top three countries rating on the indicator “Protection of Minority Investors”, where it took the 3rd place. Kazakhstan is marked as the best reformer for the fourth time in the last 12 years.
A significant breakthrough in Kazakhstan in the rating was noted by the indicators “Obtaining Building Permits” (22nd place) and “Connecting to Power Grids” (75th place). For the second year Kazakhstan is in the top ten countries for “Execution of Contracts” - 9th place.
By being the leader in Central Asia the republic makes a significant contribution to strengthening the political and social stability of the region. The country has achieved great success on the world stage as well.
In 2017 Kazakhstan hosts major international events - the 28th World Winter Universiade in the financial center of the country - Almaty and the World International Exhibition EXPO-2017, which will be held in the capital city - Astana from June 10 to September 10, 2017. The theme of the exhibition is “Future Energy”. EXPO-2017 expects the participation of 115 countries, 18 international organizations.
The stable growth of all sectors of the economy, international recognition, political stability became the basis for the prosperity of Kazakhstan society.
All these factors play a crucial part in increasing international business interest in cooperation with the republic, expanding business ties and developing new markets, including the rapidly developing HVAC and VC industry in Central Asia, Russia and the CIS countries.
Welcome to the International exhibition for domestic and industrial heating, water supply, sanitary, air-conditioning, ventilation, equipment for pools, saunas and SPA- Aquatherm Almaty 2017!