Affordable housing among the top priorities of the Kazakh government
NUR-SULTAN – Kazakh President Kassym-Jomart Tokayev announced new initiatives focused on strengthening the country’s social and economic system during the fifth meeting of the National Council of Public Trust.
The president focused on modernizing the education system, forming an inclusive social environment and protecting human rights. Housing and economic policies are also priority tasks.
Retirement savings for housing
Housing affordability through housing construction has always been a priority for the authorities. During the pandemic epidemic, President Tokayev, in his State of the Nation address, stressed the importance of further targeted transformations in the economy, the modernization of the education and health system, the transition to a digital state, the development of the concept of the listening state. and, among others, the need for housing policy reforms.
“Building better quality affordable housing,” said the president.
“We have launched a 5-10-20 housing program,” Tokayev said at the government meeting on January 26. “It aroused great interest among the population. At least 5,000 loans have already been approved. However, construction of affordable housing is happening at a slow pace. Only 9,500 apartments have been put into service, or 56% of the plan, ”he said.
The president noted that people have the option of withdrawing their pension savings to improve their living conditions.
“Now we must introduce effective measures to curb the excitement and prices in the real estate market. We know that real estate prices tend to increase. I urge the state organs to carry out explanatory work with the population and the promoters, in order to limit speculative transactions in the market, ”noted Tokayev, asking the government to submit new proposals to improve the policy. housing within two weeks.
A month later, after studying these proposals, the president addressed the members of the National Council of Public Trust.
Tokayev said thousands of people were now able to buy housing, pay off the mortgage or cut loan payments, and take the opportunity to tap into retirement savings.
“At a large government meeting in January, I made it my mission to come up with new proposals to improve housing policy. The government has developed new effective methods, ”said the president.
To address the housing problem in rural areas, the president has offered to reimburse contractors for 50 percent of the cost of building their employees’ homes. This initiative, he said, will contribute to the development of the village, increase economic activity and attract the necessary specialists, including teachers, doctors and veterinarians.
“The government should start implementing this approach from the second half of this year,” said the head of state.
According to analysts, housing construction is progressing in Kazakhstan. Despite the pandemic, weakening business growth and reducing costs, the construction industry has formed the basis of economic activity in Kazakhstan. At the end of the year, 15.3 million square meters of housing had been brought into service, 16.8% more than the 2019 results, reported PrimeMinister.kz.
Nur-Sultan, Shymkent, Karaganda, Northern Kazakhstan and Zhambyl regions lead the supply of housing.
Analysts believe that the special attention of the Kazakh authorities on the development of construction has ensured success in the sector. Nurly Zher’s Land and Housing Development Program offers low-interest mortgage loans (5% per annum with an upfront payment of 20% or more).
To support the construction industry in the midst of the pandemic, the country’s authorities have allocated 1,000 billion tenge (US $ 2 billion) for the implementation of projects under the Roadmap programs for the employment and economics of simple things.
In addition, 390 billion tenge ($ 916 million) has been provided for the implementation of the Shanyrak pilot project, of which 180 billion tenge ($ 422 million) has been allocated for the construction of social housing and 210 billion dollars. tenge ($ 493 million). for concessional loans through the House Construction Savings Bank under the 5-10-20 program.
The government is successfully stimulating public-private partnerships in the construction sector. In 2020, 2,000 billion tenge (US $ 4 billion) of investment was allocated to housing construction from all sources of finance. State investments provided 2 million square meters of social housing and at least 40,000 families received state assistance and more than 9,000 families obtained rental housing.