Real Estate Prices Dropping in Kazakhstan
In a recent briefing at the SCK, Lazzat Ibragimova, head of "Otbasy Bank", shared insights about the current state of the secondary housing market in Kazakhstan. Ibragimova predicts a return to normalcy by mid-May and June, with prices returning to last year's levels.
The buying process for housing can be initiated on both primary and secondary markets, with no restrictions on the region for buying housing, whether it's urban or rural, or primary or secondary market. This encouragement is part of government-supported programs that redirect retirement savings into real estate purchases, aiming to stimulate the market and assist individuals in accessing housing.
However, the secondary housing market has experienced cooling demand recently. After a boost in purchases by 97% country-wide by 2021, used-home prices have been declining by about 1.9% in 2025 through May. Factors contributing to this trend include high inflation (around 12%) and high benchmark interest rates (16.5%), which dampen buyer activity. Market conditions are further affected by geopolitical factors and stagnant wages, leading to less demand despite historically strong governmental support.
Ibragimova emphasized the importance of careful decision-making and avoiding hasty actions, particularly when it comes to using pension savings for housing purchases. She urged Kazakhstani citizens not to rush with early withdrawal of pension savings. For those considering using pension savings for secondary housing, it is advisable to consult the latest official guidelines from Kazakhstan’s social security and housing authorities, as policies may adjust in response to economic conditions.
President Kassym-Jomart Tokayev has emphasized the need for explanatory work by government agencies with the population and developers to limit speculative operations on the real estate market. Ibragimova assured that if a Kazakhstani citizen cannot find the desired housing within 45 days, their money will return to their pension account in the EPF. Repeat applications can be submitted without fines or commissions.
Ibragimova also commented on the sharp rise in prices on the secondary housing market. She stated that one can buy a house, not just an apartment, under the program, and there are no restrictions on buying housing for Kazakhstani citizens under the program.
In summary, the secondary housing market in Kazakhstan is experiencing cooling pressure, reflecting macroeconomic challenges combined with prior government interventions. However, the use of pension savings to aid housing purchases, including secondary housing, is encouraged by government schemes. It is essential for citizens to stay informed and consult official guidelines before making decisions regarding their pension savings and housing purchases.
Finance experts should closely monitor the secondary housing market's performance in Kazakhstan, given its declining prices and cooling demand due to factors such as high inflation, high interest rates, geopolitical issues, and stagnant wages. Investing in real-estate, particularly secondary market properties, requires careful consideration and adherence to relevant government guidelines, as the use of pension savings for such purchases is encouraged by government schemes.
