Baiterek Holding to fund affordable housing construction through local government bond purchases

     To bolster the provision of affordable housing for those on the waiting list, Baiterek Holding will invigorate construction efforts by investing in local government bonds totaling 839 billion tenge.

     This initiative aims to finance the construction of 7.6 million square meters of housing, addressing 8.8% of the projected demand by 2033. Collaborating with relevant government bodies, Baiterek Holding endeavors to reduce the backlog of individuals awaiting housing assistance.

     Furthermore, the holding plans to offer preferential loans to waitlisted individuals through government-backed programs, utilizing budgetary funds.

     “Kazakhstan Housing Company, a subsidiary of Baiterek Holding, in collaboration with government bodies and local executive authorities, will introduce a rent-to-buy program for socially vulnerable people. This initiative, funded with 272 billion tenge, is expected to deliver over 1 million square meters of real estate, equating to more than 17.3 thousand apartments”, – stated Aliya Murzagalieva, Managing Director of Baiterek Holding.

     It is worth noting that as of the end of 2023, the nationwide waiting list comprised approximately 646 thousand people. With an anticipated average annual growth rate of 6.9%, this figure is projected to swell to 1,321,826 people by the end of 2033. To accommodate this demand over the development plan's duration, the construction of 79.3 million square meters of housing is imperative, necessitating an annual output of 7.9 million square meters.

     Moreover, in early 2024, Baiterek Holding delineated its development plan for 2024-2033, outlining strategic objectives aimed at buttressing key sectors of Kazakhstan's economy.