Almaty Real Estate Market Faces Uncertainty After Tenge Devaluation

The recent devaluation of the Kazakh currency, the tenge, has sent shockwaves through the Almaty real estate market, creating uncertainty for buyers and sellers alike. According to Nina Lukyanenko, the director of DIXL, a local real estate agency, the market was initially slow to react to the devaluation, with prices attempting to rise in the first week before stabilizing. Lukyanenko attributes this to the fact that the population receives their salaries in tenge, not dollars, and the mortgage system has not become easier. As a result, the consumer ability of Almaty citizens has decreased, leading to a buyers' market with prices for offices in the city center dropping to $20 per square meter, down from $50 per square meter just a few months ago.

Key Takeaways:

• The devaluation of the tenge has impacted the Kazakhstan real estate and housing market, leading to a buyers' market with prices for offices in the city center dropping to $20 per square meter.
• The market was initially slow to react to the devaluation, with prices attempting to rise in the first week before stabilizing.
• The population receives their salaries in tenge, not dollars, making it difficult for sellers to increase prices.
• The mortgage system has not become easier, further reducing the consumer ability of Almaty citizens.
• Several cases have been reported where the seller and buyer have had to compromise due to the devaluation.
• Lukyanenko predicts that prices will continue to fall in the next two-three months and may not reach the bottom yet.
• The market is still experiencing a low level of activity, with some purchases in the elite housing sector.

Statistics:

• Prices for offices in the city center have dropped from $50 per square meter to $20 per square meter.
• The devaluation of the tenge has reduced the consumer ability of Almaty citizens.
• According to Lukyanenko, there have been several cases of compromise between sellers and buyers due to the devaluation.
• The market is experiencing low levels of activity, with some purchases in the elite housing sector.
• Prices are expected to continue falling in the next two-three months.

Sources:

• Asia Pulse, "Real estate prices in Almaty set to fall over the next few months creating a good market for buyers."
• Nina Lukyanenko, Director of DIXL real estate agency, as quoted in Asia Pulse, "Real estate prices in Almaty set to fall over the next few months creating a good market for buyers."