Economy • 19 March, 2019

Government reviews implementation of Nurly Zher and 7-20-25 programs: 118 thousand houses to be built

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March 12, 2019, a meeting of the Government chaired by the Prime Minister Askar Mamin reviewed the implementation of the Nurly Zher State Housing Program and the Mortgage Program “7-20-25.”

According to the Ministry of Industry and Infrastructure Development, 1.2 trillion tenge were invested in housing construction from all sources in 2018, which is 8.1% higher than the 2017 level. It was noted that 6 tenge of private investment was attracted for 1 tenge of public funds spent.

Minister of Industry and Infrastructure Development Roman Sklyar reported on the rates of construction of rental and credit housing for socially vulnerable categories of the population as part of the implementation of the Head of State’s instructions given at the XVIII Congress of the Nur Otan Party.

“12.5 million m2 of housing was commissioned, which is higher by 12.1% compared with 2017 level. A total of 113.7 thousand apartment blocks and individual houses were built. The share of Kazakh content in housing construction increased by 9%,” said Sklyar.

It is planned to build 13.1 million m2 of housing or 118 thousand houses in 2019.

As the minister stressed, 1.5 million square meters will built at the expense of public investment, which will provide more than 27 thousand needing families with their own housing.

Since early 2019 (January-February), 1.7 million m2 15 thousand houses have been commissioned from all sources of financing (including commercial housing and individual housing construction).

For the construction of engineering networks to the areas of mass housing development it is planned to allocate 81.7 billion tenge in 2019.

He also informed about the construction of rental housing without redemption.

“For these purposes, the regions from the republican budget provided 32.8 billion tenge. It is planned to build about 4.5 thousand apartments. As part of the budget refinement for 2019, for the implementation of the Head of State’s instructions, given at the XVIII Congress of the Nur Otan Party, the construction and purchase of rental housing for large families provides for allocation of 50 billion tenge to the regions. In total, 350 billion tenge will be allocated over 7 years. This will provide about 6 thousand large families with apartments annually, and for 7 years to provide more than 40 thousand apartments,” said Sklyar.

The list of construction projects for 25 billion tenge have been compiled. For the purchase of ready apartments there is 25 billion tenge provided.

All these measures will speed up the solution of housing issues for large families.

For working youth in the cities of Astana, Almaty and Shymkent, 7.2 billion tenge was provided in 2019 for the construction of at least 1 thousand rental apartments. For three years, 21.6 billion tenge has been allocated for the construction of apartments for young professionals.

Regarding credit housing, akimats plan to attract 108.8 billion tenge for the construction of 11,719 apartments (740 thousand square meters) in 2019.

It is planned to introduce preferential loans to families with many children, families with or raising children with disabilities, incomplete families at 2% per annum for up to 20 years with an initial contribution of 10% through the Housing Construction Savings Bank.

Down payment may be covered by a housing certificate.

The implementation of this mechanism will take 150 billion tenge for 3 years — 50 billion tenge annually.

“If the program 7-20-25 covers more solvent strata of the population, then for social workers and budget organizations, the services of Housing Construction Savings Bank are predominant. The number of investors has already reached 1.3 million, with an accumulation amount of 624 billion tenge,” Sklyar summarized.

During the discussions on the issue, Chair of the JSC Baspana Mortgage Company Kairat Altynbekov reported that more than 10.5 thousand applications for a loan amounting to 120 billion tenge were received under the 7-20-25 Program. Of these, 6.2 thousand applications were approved for a loan totaling about 72 billion tenge. He also informed about the changes in the program conditions, which would expand the coverage of the population, including for low-income families.

Akims of Pavlodar region Bulat Bakauov and West Kazakhstan — Altai Kulginov reported on the development of housing construction in the regions.

In his turn, Deputy Prime Minister Zhenis Kassymbek stressed that the funds for providing families in need with housing are fully covered by the budget. Within one month, the first apartments may already be issued. In this regard, Kassymbek called on local executive bodies to keep this issue under special control.

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