No preconditions seen for housing price hike, Industry Minister says

Kazakhstan's Minister of Industry and Construction, Yersaiyn Nagaspayev, has stated that he does not anticipate a rise in housing prices following adjustments to the sufficiency thresholds for early withdrawal of pension savings from the Unified Accumulative Pension Fund (UAPF).

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I will definitely not make forecasts regarding an increase or decrease in prices on the housing market. I believe that would be wrong. But I currently see no prerequisites for this.

During a government briefing, Nagaspayev responded to questions about the potential impact of these changes on the housing market. "I will definitely not make forecasts regarding an increase or decrease in prices on the housing market. I believe that would be wrong. But I currently see no prerequisites for this," he stated. He also noted that the state does not regulate prices for commercial housing, which are determined by market forces of supply and demand.

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On average across the country, a square meter of commercial housing today costs 617,000 tenge. As for commercial housing, it is a matter of supply and demand. We do not interfere here.

"On average across the country, a square meter of commercial housing today costs 617,000 tenge. As for commercial housing, it is a matter of supply and demand. We do not interfere here," the minister explained. In contrast, prices for social housing remain under state control and are not expected to increase. Consolidated cost indicators, or price caps, have been communicated to each region for social housing.

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We control prices for social housing, and they will not increase. Price caps, consolidated cost indicators, have been communicated to each region.

Nagaspayev also pointed out that housing demand traditionally increases during the summer months. He acknowledged a potential decline in market activity earlier in the year but highlighted that the summer period typically sees heightened demand. When asked if the increase in UAPF sufficiency thresholds had affected the market, the minister briefly replied, "Yes."

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Yes.