Kazakhstan was part of the USSR for 70 years
until the early 1990s when it became a market
economy. Early growth in the real estate market was driven
by a shift of the country’s capital in 1997 from Almaty, the largest city, to Astana (literally meaning “Capital City”).
Property managers in Kazakhstan have been forced to negotiate the challenges of a new, developing economy that is tightly
linked to the rest of the world—60 percent of the country’s economy is generated by oil, and fluctuations in the exchange rates
can have a dramatic effect. They are beginning to find support
from local institutions and are adapting to the challenges of the
PROPERTY MANAGEMENT IN KAZAKHSTAN
Property management in Kazakhstan is a young industry. Because the country only recently moved to a market economy
and then went through two major economic shocks in the past
decade, the companies providing property management services are predominantly large market conglomerates.
The market grew exponentially in the early 2000s, and construction and service companies were only barely able to keep
up with demand. In the aftermath of the 2008 financial crisis,
more than two-thirds of newly developed properties passed into
the hands of the banking sector when developers and property
owners became unable to meet obligations and were forced to
incur financial losses.
The banks, in turn, created affiliate companies to manage
these properties because they were not interested in doing so on
These circumstances shaped the current state of the country’s
property management industry. Each owner, whether a bank or
an independent asset owner, has its own management company.
The bank-affiliated management companies make up most of
the market and are experiencing a shortage of professional staff.
Very few go into business as independent vendors offering
services to the larger conglomerates. Only a handful of internationally recognized independent companies have been hired for
facility management, which is unfortunate because the market
is in need of the high level of expertise they provide in order to
manage the cutting-edge buildings being built in the new market.
Despite these challenges, the real estate ecosystem in Kazakhstan is adapting to the new circumstances. Newly developed
certifications are maintaining high standards, and the participants in the market are finding ways to create exchange.
When it comes to green buildings, for example, the Kazakhstan Green Building Council (KazGBC) is a member of
a young industry
is tightly linked
to the rest of the
world and has
shifts in the