Tuesday, August 16, 2011 -
The Kazakh government is asking private investors to partner in a project to construct 21.5 million square feet of housing within four years throughout the vast country, the local Tengrinews web site reported Tuesday.
For the first time the apartments will be actively constructed in the regions rather than in major cities, said Kuandyk Bishimbayev, deputy chairman of Kazakhstan’s national welfare fund Samruk-Kazyna, which is expected to operate the initiative.
The project is designed to counter a slight rise of real estate prices and meet expected demand for primary housing, the top manager said.
The initiative is also aimed at helping to develop local economies throughout the territory of Central Asia’s largest country.
To minimize business risks and leave space for private initiative, housing will only be built if private construction companies are prepared to invest money on a parity basis.
“The purpose is to construct about 2 million square meters of affordable housing within three to four years,” Bishimbayev said.
The properties will be built for both sale and rental.
The proposal by Samruk-Kazyna has resulted in strong interest from the private sector.
“Construction companies are very interested in this program, consumers are waiting for this program, as we are setting very clear price limitations,” the en.Tengrinews.kz quoted Bishimbayev as saying.
“We are talking about construction of affordable housing and affordability is certainly ensured through price,” he said.
Samruk-Kazyna manages over two-thirds of Kazakhstan’s economy, including its state-owned oil, electricity, railway and uranium assets.