Katen Bakhytbek. In spite of world mortgage crisis, real estate market is still attractive for investors.// Khabar, “Evening news”, March 3, 2008

http://www.mediasystem.kz/2008/03

In spite of world mortgage crisis, real estate market is still attractive for investors.

The statement has been announced on 1 international forum “Investment in Kazakhstan real estate”. 

Real estate market. Almaty held the first international forum “Investments in Kazakhstan real estate”. Financiers, economists and heads of construction companies talked about investment attractivness of Kazakhstan real estate market.

Despite of world crisis, real estate market is still attractive for investors. This statement has been repeated several times. Of course, now western businessmen do not expect extra profit as in April last year, but current level of profitability fits the expectations. In contrast to neighbor countries, Kazakhstan has such advantages as political stability, legal safety and opportunity for foreigners to buy real estate and free capital transfer.

Mark Lerh, president of investment group “Cab Invest” (Germany): “Of course, there will not be extra profit of 50-100%. Our forecast that profitability will be at least 20% and this rate is still high.

In experts’ opinion that bad business planning, absence of risk management and not effective management have been the reasons of difficult financing situation with construction companies. But these mistakes gave the opportunity to improve work using the experience. Our construction companies should pay more attention on world capital markets.

Bakhytbek Katen, director of consulting company “NAI KazkahstanAristan”: “Kazakhstan companies should pay attention on this capital market, enter it  and get ready to work there, the main mistake of our developer companies is unpreparedness to work with international institutional investors.”

Foreign participants of the forum consider that real estate market in Kazakhstan should be seen in long-term perspective. In near 15 years Almaty will be financial and economical centre in Central Asia region. So, international players should try to get the market share now, while the competition is not tough. However, Kazakhstan companies and state are recommended to be more active to keep up with neighbor markets.

Sayasat Nurbek, chief manager of Department of International Relations of JSC “Kazyna”:  “Neighbor real estate markets are developed in Russia, China and India. So, private market should think how to keep the investment attractiveness and how to compete with other rapidly developing markets”.

Kazakhstan businessmen are offered to create joint construction companies to import advanced western technologies and modern architectural projects.

Katen Bakhytbek. In spite of world mortgage crisis, real estate market is still attractive for investors.// Khabar, “Evening news”, March 3, 2008