Market

KAZAKHSTAN

is the world’s 9th largest country in area. Geographically, the country is located deep in Eurasia, on the crossroads between Europe and Asia. The country’s population is 16 millions 455 thousand (February, 2011). Astana is its national capital. Almaty is the country’s biggest city and its long-standing economic, cultural and educational centre. On 1 July 2010, a unified customs area will come into effect in Kazakhstan, Russia, and Belarus.

Kazakhstan prepares to join the World Trade Organisation. The country has all favourable opportunities for business development, and the situation keeps improving every year.

According to the World Bank classification Kazakhstan is a part of group of companies with the average income level. Comparing the main life quality rating for the last ten years the average cash income of Kazakh people has increased in five times; there is almost six times growth of average monthly wage; deposits of physical persons in banks and the volume of investments for one resident has increased in 35 and 37 times, respectively.

Kazakhstan boasts a dynamic mining industry, non-ferrous and ferrous metallurgy, mechanical engineering, construction industry, small and medium business, etc. According to the active oil the country is one of the 10 world oil companies. Kazakhstan is on the 2nd place according to the reserves of oil among non OPEC member countries. The common expected hydrocarbon resources are estimated as 12-17 billion ton. These amounts of resources lets potentially treat Kazakhstan as one of the world oil power countries.

The biggest Kazakhstan megalopolis is Almaty city that is the financial center of the Republic. Here work more than 50 banks and financial companies, 42 insurance companies and 67 companies working on the real estate market. The average cost of residential real estate on the secondary market here is 1 775$ per square meter (March, 2011)

REAL ESTATE

There is a new state programme of house building for 2011 – 2014 accepted in Kazakhstan. Due to the programme about 350 thousands of families every year will be able to improve their living conditions. 6 million square meters of houses will be built annually in Kazakhstan.

There are three main directions of state support for house building in the frames of new programme. The first direction is a building by local executive powers of credit habitation with use of system of deposits for houses. On realization of this scheme for 2011-2013 it is offered to allocate 40,8 billion tenge, including during the current year - 20,8 billion tenge. A current rate - 145,59 / $1 (March 2011г.).

As the second direction it is offered funding of banks of the second level for building and mortgage financing. In 2011-2012 it is offered to allocate for these measures 70 billion tenge, including during the current year - 57 billion tenge. As a result of it in 2012 input of 1,7 million sq. meters of commercial habitation is expected.

The third direction is building of an engineering-communication infrastructure at the expense of budgetary funds. In 2011-2012 for these purposes will be allocated 40 billion tenge, including this year - 10 billion tenge that will allow to build annually about 1,2 million sq. meters of individual housing construction.

Arranged deals

In February, according to Agency, in republic 10 696 transactions of purchase and sale of habitation have been concluded. Their quantity in comparison with January (9 207) has grown on 16.2 %. In Almaty in February 1 589 transactions (on 38.1 % have been registered more than in January), from them 1 367 transactions were necessary on apartments, 222 — on houses. In Astana in February have concluded 785 transactions of purchase and sale (in comparison with January their number has increased by 48.1 %), from them 63 houses and 722 apartments.