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On August 1, 2025, ‘Baiterek’ National Managing Holding held a media briefing. The Head of the Holding’s Press Service, Perizat Shakenova, provided detailed information on amendments to the Law “On Equity Participation in Housing Construction” and new mechanisms for protecting the rights of equity holders.
As Perizat Shakenova explained, the amendments to the legislation on equity participation in housing construction were adopted in Kazakhstan on June 30, 2025, and will come into force on September 1.
“These amendments aim to address systemic issues in the equity construction sector, primarily to combat the shadow market. First, the amendments significantly increase transparency in the equity construction market and strengthen the protection of equity holders. Second, they support legal construction and tighten requirements for developers. Each area of reform contains a broad set of measures, but the key focus is the protection of equity holders’ rights,” said Perizat Shakenova.
One of the key innovations is the tightening of regulations on issuing mortgage loans for properties under construction.
“Simply put, a mortgage for a housing project under construction can now only be granted if the construction project is officially approved. That means a mortgage can only be issued if the developer has received a guarantee from the unified operator — the Kazakhstan Housing Company (KHC) — for the completion of that specific project, or if the developer has obtained a construction permit for the particular residential complex from the local executive authority (akimat),” Shakenova clarified.
Additionally, new controls have been introduced. A mortgage agreement may only be signed if the developer has registered the equity participation agreement in the Kazreestr system.
According to KHC, last year about 67% of construction projects — approximately 390 residential complexes with more than 145,000 apartments — were being sold at the construction stage without the required permits, i.e., without a KHC guarantee or akimat authorization.
“Such a high share of so-called ‘grey’ developments created serious risks for citizens investing in housing, as well as for the stability of the construction sector as a whole,” noted the press service head of ‘Baiterek’ National Managing Holding.
Since the launch of the guarantee mechanism in 2016, KHC has issued over 260 guarantees worth 1.3 trillion tenge. This has enabled the construction of 6.3 million square meters of housing, or about 70,000 apartments.
“The figures speak for themselves: government support tools are working, the market is becoming more transparent, and participation is becoming safer for equity holders.”
The newly adopted legal amendments are designed to protect Kazakhstani citizens from investing in dubious developers who may freeze construction and leave participants without homes and in debt.
Representatives of the Holding urged all citizens to thoroughly check developers and always verify the availability of the required permits.
Another important amendment to the law on equity participation is the ban on all forms of preliminary agreements for the sale of housing under construction.
The following are now prohibited:
reservation agreements;
preliminary purchase-sale agreements;
investment agreements;
any other forms of attracting funds not provided for in the law.
“Typically, these agreements are not registered anywhere and do not provide legal protection for investors or equity holders. This ban is aimed at eliminating schemes previously used by developers to bypass the law, including attracting funds under a mortgage with interim collateral. In Kazakhstan, the only legal form for selling housing under construction is through an equity participation agreement. This agreement follows a standard form approved by the Minister of National Economy and must be registered in the Kazreestr system. The ban protects citizens from non-transparent schemes and reduces risks when buying housing under construction,” emphasized Perizat Shakenova.
Another key change is that from the moment the amendments take effect, all payments between equity holders and developers must be made in non-cash form.
This means that any payment for housing under construction must go through second-tier banks — no upfront cash payments are allowed.
According to ‘Baiterek’ Holding, under current laws, developers could still receive money in cash or via informal schemes. This leads to potential misuse of funds or outright fraud, leaving equity holders without homes or proof of payment.
“Under the amendments, if an equity holder comes to a second-tier bank to transfer funds to a developer, the bank is obliged to check whether the developer has a KHC guarantee or an akimat permit. If the Kazreestr system shows no records for that developer or project, the bank is not allowed to transfer funds. The money is returned to the customer, so they don’t lose their savings.”
Furthermore, the amendments prohibit advertising for construction projects that lack a KHC guarantee or akimat permit.
Aggressive marketing with attractive pricing has been a key tool in deceiving equity holders. Developers lure buyers with deep discounts at the excavation stage. Trusting customers fall into the trap, use their own or family property as collateral, and ultimately lose everything due to dishonest developers.
From now on, advertising of unauthorized projects will be prohibited by law, helping prevent misinformation and fraud.
The Holding offered citizens a “self-protection system” for equity participation in three simple but essential steps:
First, check that the developer has a KHC guarantee or akimat permit to conduct equity participation in housing construction.
Make sure the guarantee or permit specifically applies to the house (or block/phase) mentioned in the agreement. There have been cases where developers obtained documents for one section but collected funds for the entire complex.
Citizens can find information about authorized projects on the Housing Portal: homeportal.kz.
They can also verify legality via the eGov Mobile app or second-tier bank apps such as Halyk, Smartbank, bcc.kz, or Alatau City Bank (formerly Jusan Bank).
Before purchasing housing under construction, you must sign an equity participation agreement approved by the Minister of National Economy of the Republic of Kazakhstan. All other forms of agreements are illegal.
After signing, the equity participation agreement must be registered with the akimat through the Kazreestr system.
Upon registration, an official extract is issued. Buyers should always request this extract from the developer and only then make payments.
On July 1, the National Bank of Kazakhstan announced a new regulation that will prohibit developers from accepting any cash payments from equity holders. All payments must be made through second-tier banks to eliminate “grey” schemes.
