Kazakhstan’s Construction Sector Attracts Over $7 Billion in Investment
Kazakhstan’s construction industry continues to consolidate its role as a key driver of economic diversification, attracting 3.8 trillion tenge (US$7.6 billion) in housing investment, predominantly from private sources, while advancing urban renewal, improving living standards, and modernizing utilities infrastructure. Sustained government policy, institutional reforms, and digitalization have elevated the sector to a new phase of sustainable development.
The country’s housing stock comprises approximately 59,000 apartment buildings, over 63% of which are in satisfactory condition. Systematic capital repairs and renovations are being carried out, according to the Ministry of Industry and Construction (Feb. 4). Under the Housing and Utilities Infrastructure Development Concept for 2023–2029, 20.7 billion tenge (US$41.6 million) has been allocated for capital repairs to 363 apartment buildings in 2026–2028. Since 2020, 1,015 buildings have undergone major overhauls through preferential 0.1% budget loans, reducing the share of housing requiring significant repairs from 33.1% to 28.8%.
Urban renewal programs have also progressed. By the end of 2025, 79 dilapidated buildings will be demolished, enabling over 2,000 families to move into new housing and supporting neighborhood modernization.
Government support for housing construction continues through rental and mortgage programs. In recent years, 14,500 rental apartments for citizens on housing waiting lists were acquired for 217.8 billion tenge (US$438.1 million), while 14,100 units were built or purchased through mortgage financing for 140.2 billion tenge (US$282 million). Mortgage programs have emerged as a major growth driver, with more than 8,600 loans totaling 233 billion tenge (US$468.7 million) issued under state-supported initiatives. In 2026, the government plans to repurchase local executive body securities worth 155 billion tenge (US$311.8 million) and issue over 12,000 additional preferential mortgage loans.
A key institutional reform involved granting Otbasy Bank the status of a national development institution, consolidating housing registration and rental unit distribution functions. Currently, approximately 951,000 citizens are registered in the unified system. Legislative amendments also allow privatization of previously allocated rental housing, with over 15,000 families exercising this right in 2025, including roughly 9,000 receiving housing free of charge.
Housing construction surpassed planned targets for the third consecutive year. In 2025, 20.1 million square meters of housing (185,800 units) were commissioned, exceeding the 19.2 million square meters target. Total investment in housing construction reached 3.8 trillion tenge (US$7.6 billion), including 3.5 trillion tenge (US$7 billion) in private capital, demonstrating strong investor confidence.
Reforms in shared construction have eliminated shadow schemes and strengthened citizen protections. New legislative norms ensure equal conditions for developers and are supported by digital monitoring tools.
Large-scale investments continue in water supply and sanitation infrastructure. In 2025, 242 billion tenge (US$486.8 million) was allocated, reducing network depreciation by 38% in water supply and 54% in sanitation. The national project for modernizing energy and utilities infrastructure aims to attract 1.9 trillion tenge (US$3.8 billion), modernize thousands of kilometers of utility networks, and build or reconstruct 45 wastewater treatment facilities.
