Archived Articles

Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.

He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.

In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.

Global Real Estate Project
News Index

Directories
  Int'l Realty
  US Realty

• Kazakhstan 2001
  
• Kazakhstan 2006
  
• Kazakhstan 2007
  
• Kazakhstan 2008
  

Kazakhstan is the second former Soviet republic by its size (behind the Russian Federation) - almost 3 million sq.km or 1 million sq.mi. which puts it on ninth place in the world. It became independent state after the aborted communist coup in 1991 but since the Soviet era it has been ruled by Mr. Nursultan Nazarbayev. The real estate market in this vast country is concentrated in three towns which by different reasons are called "capitals" of Kazakhstan.

The former capital - Almaty

The city of Almaty (South-Eastern Kazakhstan), former Alma-Ata, was the capital of the country when it became independent exactly 10 years ago. Even now it's the largest city in the state with population of 1,2 million (the population of the country is almost 15 million).

Till the 1995 both the real estate prices and rents in the city went upward. This process of market development can be seen in any other capital city in the former Soviet Union and Eastern Europe. The highest levels were attained in the middle of 90s when fully renovated 2 BR apartments were sold as high as $90,000. In the following 6 years the prices went down by a third and now you may have the same apartments for $60,000 in average. For the unrenovated apartments of the same size the prices in the last 6 years went down from $50,000 to $35,000*.

The similar decrease has been noticed also on the rent market. From $2,300-2,500 the level of monthly rents for the luxurious renovated and furbished 2 BR apartments in 1995 have stepped down to $1,500-1,800. For the 4 BR renovated apartments and houses the rents decreased in average from $6,000 to $4,000 per month.

The present capital - Astana

One of the reasons why the prices and rents decreased in Almaty in the last years was the fact that in late 1994 the Kazakhstan government decided to move to a new capital city - Astana, former Akmola (Northern Kazakhstan). In the next 5 years after this announcement the prices and rents in Astana increased by 400 percent because of the higher demand from the state agencies and officials. The prices reached their peak in late 1999 when the 2 BR renovated and furnished apartments were sold for $40,000. Now the price of same size apartment has decreased to only $20,000.

Depending on the different locations the 2 BR luxury apartments in Astana today may be rented between $1,000 and $1,500 per month. The rents of 4 BR renovated and fully furnished houses and apartments may reach $4,000 per month.

The future (oil) capital - Atyrau

There is a place in Kazakhstan where prices and rents still defy the gravity. This is Atyrau, the major oil center in the country (Western Kazakhstan). Some years ago it was a simple town not different from many other industrial cities in the former Soviet Union developed during communism. Three years ago Atyrau didn't know what asphalt road is but now many major international oil companies are investing massively in the local real estate market.

In the last 3 years the rents for 2 BR apartments went up reaching in some prime locations $3,000 per month. For a simple 1-room suite the rents increased in the same period by 400 percent to $400 per month. The 4 BR luxury houses and apartments may be rented for up to $5,000 per month.

The prospects of finding and developing the big oil reserves of Kazakhstan will push up the market of Atyrau in the coming years.

ENDNOTE: All these price and rent levels of course aren't for the majority of local Kazakhs who gain $100-200 in average per month. Only the foreign specialists and businessmen can enjoy living in such conditions.

* - 2 BR apartments in Kazakhstan as well as in many other European and former Soviet Union countries are called "3-room apartments". The additional room in fact is the living room.

--------------------

See also the directory of companies providing real estate services in, and general real estate information of Kazakhstan.