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Kazakhstan government to toughen liability of property developers for illegal construction

Kazakhstan government to toughen liability of property developers for illegal construction
Фото: primeminister.kz 23.04.2024 17:56 972

Prime Minister Olzhas Bektenov instructed to take measures to launch a new mortgage programme and implementation of the rental housing mechanism to stimulate demand for real estate. This year the Head of State Kassym-Jomart Tokayev has set a task for the Government to ensure commissioning of 18 million square metres of housing across the country, El.kz cites primeminister.kz.

Within the framework of execution of the task set by the President, since March 1 of this year Otau programme has been launched by Otbasy Bank. According to its terms, Kazakhstanis will be able to obtain a housing loan of 30 million for Astana and Almaty, 18 million for other regions at 9% per annum and 7% for socially vulnerable groups of population.

As of 18 April, the bank had accepted 18,729 applications for participation. To restrain the growth of property prices, placement of objects by developers on the platform Baspana Market will be carried out only after agreeing the collateral value.

The launch of new housing programmes will increase the demand for real estate. In this regard, the Ministries of Industry and Trade together with the Agency for Protection of Competition have been instructed to take necessary measures to prevent agiotage in the market of real estate and building materials within a month. 

A separate issue, which was emphasised by Olzhas Bektenov, is the quality of constructed objects. Problems that are discovered after moving into the completed housing should be solved by the developers. 

"Another important issue is to ensure the quality of construction and compliance with legislation. Construction companies must clearly fulfil their obligations and prevent poor quality of construction. And when deficiencies are identified they must promptly correct them. The Ministry of Industry and Construction together with the interested state bodies should develop legislative amendments within a month to toughen the measures to punish developers and officials for illegal construction. It is necessary to introduce them into the draft Construction Code," Olzhas Bektenov emphasised.

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