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The apartment for one billion: how long will it take for Kazakhstan citizens to get used to the new prices

11 february 2016

The market of real estate changes price tags. Since  February 2, 2016 on "Krisha" it is forbidden to specify housing cost upon purchase, sale, rent and other operations in foreign currency. Now all prices have to be only in tenge.

How this innovation will affect the market of real estate and how long Kazakhstan citizens will transfer on a habit the tenge prices to dollars, the president of the Kazakhstan real estate federation Ermek Musrepov, the vice-president for organizational issues of the Joint association of realtors of Kazakhstan Larisa Stepanenko and   the marketing and sales director of Global construction company Tatyana Neverko told.

The calculator in the help

Habitual real estate prices with the $ badge in Kazakhstan aren't present anymore. Buyers, tenants and sellers should get used to new nine-digit figures, after all now the cost of real estate is estimated in millions and billions.

— The prices with six and nine zero, of course, are unusual and disorient buyers in understanding of a project cost. In the beginning the consumers hand will reach for the calculator, to orient. I think at least a month is required to adapt for new figures.- Larisa Stepanenko says.

Thus she is sure that transfer of the prices to national currency will be well reflected in the market of real estate in general.

— We got used to think and consider in dollars, and it is wrong. If in our country it was  accepted to count housing cost in tenge, we  could avoid that stressful situation which occurred in the market after August of last year. Because of jumps of dollar rate the transaction on purchase and sale stopped, buyers and sellers were afraid to risk — Larisa Stepanenko explains.

Ermek Musrepov also says that the reason of critical situation was the dollar price tags in housing market. In his opinion, zero activity is observed today, the number of transactions of purchase and sale considerably decreased. Served as the reason for that uncertainty of the average price for square meter and lack of accurate differentiations on a real estate class.

Whether the real estate will become cheaper?

In that recalculation of cost in tenge will be positively reflected in housing market, all are sure — both the authorities, and specialists of branch. At least it will allow it to be stabilized and leave a condition of stagnation. As for forecasts about the change in price, that, according to Ermek Musrepov, in the next two months will be observed adjustment towards decrease.

— The prices will fall approximately by 10–15 %, then stabilized, will be corrected further only taking into account inflation — Musrepov explains.

 According to Larisa Stepanenko, cost can decrease a little due to urgent sales, but even thus there won't be sharp falling, as the real estate for half a year strongly gave in the price. Also Tatyana Neverko holds this opinion, believing that reduction of prices is possible only at those construction companies which initially put too high profit.

— In present realities clients more carefully investigate the market in search of the most acceptable ratio the price quality, therefore against the general transition to tenge value unfairly high prices of primary housing will be corrected. As for the companies, whose projects are at a stage of construction and have an import component, with a growth of US dollar exchange rate they, most likely, will be compelled to lift the tenge price tags — Tatyana Neverko considers.

However, if take the market of rent as an example where for a long time the prices are recorded in national currency, here for the last half a year decrease by 25–30 % is noted. Mostly it is promoted by a surplus of offers which was formed because of emission of a large number of real estate of sales sector.


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