REVIEW  OF  REAL ESTATE IN KYRGYZSTAN

The prices for the real estate in Bishkek and in all things Kyrgyzstan for last decade were marked small, but stable growth. However, the essential tendency of a rise in prices on primary, secondary habitation and on office facilities is observed since 2003. For example: the price of a three-room apartment from 10 thousand dollars has increased up to 35 thousand. Such sharp jump of the prices was affected with various factors. Citizens of Kirghizia basically stored the savings in the American currency. Instability of dollar has served as the reason of that the population began to invest in the real estate. The prompt rise in prices on the real estate is observed since summer of 2006. As a result, since 2006 till September, 2007 of the price for apartments and office facilities have grown on 100 %. One of the main reasons name progress of the mortgage. Today more than 40 % of all apartments are on sale under the mortgage the client brings an initial payment of 30 %, and other sum the bank for the term of nearby 8  years under 15 % annual gives out. The important factor is also that many our compatriots working abroad, put the earned money in the real estate in Bishkek and a resort zone of Issyk Kul.  citizens of Kazakhstan also invest  in Kyrgyz  market of the real estate. Artificial overestimate of the prices of apartments of the secondary market of habitation is observed. To the middle of 2007 demand for habitation exceeded the offer. Many analysts and experts converge in a common opinion, that in a greater degree the reason which influences a rise in prices, is  the limited market of the real estate . Construction of inhabited complexes was not conducted more than 12-years, therefore demand exceeds the offer. The full and exact analysis of the market of the real estate can be lead only in view of all factors influencing this market.

Cost of apartments in Bishkek
In Bishkek one-room apartments have a greatest demand. On statistical data for last 2 years on a fraction of purchases of one-room apartments 35 %, two-room 25 % are necessary, 15 % have made deals with the ground areas and uninhabited facilities. For the first half-year 2008, on the average, the price of one square meter of the secondary market of apartments has grown from 780 dollars up to 920-ти. For the years period of 2007 of the price for the real estate have grown on 3 %.

Cost of the private real estate in Bishkek
                                                                               Construction of elite private residences
                                                          Along the river's scarlet-Ala-Archa in a southern part of Bishkek

It is observed as well a growing  of prices in the market of the private real estate. For expired half a year it has made 6 %. The average price for one square meter makes about 750 dollars. The average price of square meter of dear elite private residences makes 890 dollars. The market of the ground areas opposite, undergoes significant reduction of prices. In the central part of city of the price have fallen to 5,45 % and have made 370 dollars for sq.m, in the western part 23 %, accordingly 47 dollars for sq.m., the biggest recession of the prices in northern part of capital 52 %, and only 24, 09 dollars for sq.m.

Cost of trading premises in Bishkek
The price for the real estate under trading premises has considerably increased. In city centre the average price 969 dollars sq.m., a southern part 912 dollars sq.m. As opening of shop or shopping center in the central part of city very favorably, therefore cost of trading premises in the center the highest.

Cost of office facilities in Bishkek
The prices of the real estate of office facilities in the central part of Bishkek reach 1285 dollars sq.m., in a southern part 1040 dollars sq.m. In comparison with 2006  the price for office facilities  grown average on 36 %.
The essential difference in cost of the real estate between northern and southern territory of Bishkek is observed. The reasons of low cost of the real estate in northern part of city speak high seismicity of territory owing to which there it is forbidden to erect high-altitude buildings. Also the high level of subsoil waters jeopardizes floodings one-storeyed inhabited objects in the north of Bishkek.

The price forecast of the real estate in Bishkek
There are inconsistent forecasts of a price condition of the market of the real estate. The developed system of bank credits allowed kazakh citizens to put the investments into the real estate into Bishkek. However, bank crisis in Kazakhstan entails the time termination of delivery of credits that conducts behind itself reduction in demand for the real estate among citizens of Kazakhstan in Kyrgyzstan. Average cost of an one-room apartment for September, 2008 makes approximately 35-40 thousand US dollars.If delivery of credits by the Kazakhstan banks will not renew, in 5-6 months of the price for habitation on the average will decrease on 20-30 %. However, many experts of real estate state have the opposite point of view and  assure, that crisis in a neighbouring country will not be reflected in a condition of the market because of absence of the essential reasons, and here for a rise in prices there is enough of prerequisites. One of them is mass return of migrants from Russia (more than 20 000 person). Naturally enough, that demand for the inhabited real estate will increase, and together with it the price for habitation will increase also. Believe also, that when delivery of credits in Kazakhstan will renew, the prices for the real estate become above, than in August, 2007 when the biggest rise in prices has been fixed. Many experts and experts of the market of the real estate of Kyrgyzstan believe, that under the control the state which will help to adjust a condition of the market can take a situation and to watch growth and recession of the prices for habitation. Till the present moment the market of the real estate it is not well  controlled by  public services

 

 

 

 

 

 

 

 

 


              

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