Despite the COVID-19 pandemic and the problems in the economy caused by it, the Kazakhstani residential real estate market demonstrated dynamic growth in 2020. The number of transactions with residential real estate for the second year in a row exceeded 300 thousand, the cost of housing in the primary market increased by 5%, while in the secondary market the price growth reached 14%. The main driver of growth was multilateral government support, thanks to which mortgage lending grew by 12% in 11M2020, while since August 2020 the average monthly growth has been 50% yoy. Also, the rise in prices for residential real estate was influenced by the effect of the pass-through of the depreciation of the tenge to the value: over the past three years, the national currency has been depreciating almost continuously, having fallen against the dollar by almost 30% over this period. The inflow of funds from a new source, pension savings, will support further growth of activity in the housing market, and in 2021 we predict an increase in residential property prices by 5-10%.
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