What Forces Drive the Real Estate Market of Kazakhstan?

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Date

2008

Journal Title

Journal ISSN

Volume Title

Publisher

Suleyman Demirel University

Abstract

This paper analyzes the key economic and structural forces shaping the real estate market of Kazakhstan, with a particular focus on Almaty. Over the last decade, rapid GDP growth, rising oil revenues, foreign capital inflows, and the expansion of mortgage lending have significantly stimulated demand for housing. At the same time, speculative activity and the absence of strict regulatory mechanisms contributed to sharp price increases, especially during the 2004–2007 boom. The study evaluates both demand-side factors—economic growth, demographics, household income, banking sector activity, investment motives, and fiscal policy—and supply-side factors such as construction costs, government regulations, and expected returns. Using regression analysis, the research identifies the relative impact of these variables on price formation. Findings show that mortgage lending, bank investment, and income levels are among the strongest drivers of housing prices in Almaty.

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Keywords

Kazakhstan real estate market, housing prices, mortgage lending, economic growth, speculative activity, construction sector, price drivers, regression analysis, oil revenues

Citation

Maxim Kononov / What Forces Drive the Real Estate Market of Kazakhstan? / Suleyman Demirel University / Сду хабаршысы, 2008