Commercial Real Estate - Kazakhstan

The Commercial Real Estate market market in Kazakhstan is forecasted to reach a staggering value of US$263.80bn by 2024.
This projection indicates a promising growth potential for the country's real estate sector.
Furthermore, it is expected that the market will experience a steady annual growth rate of 6.49% from 2024 to 2029, resulting in a substantial market volume of US$361.20bn by the end of the forecast period.
In a global context, it is noteworthy that the United States is expected to generate the highest value in the Real Estate market, with an estimated worth of US$25.3tn by 2024.
This highlights the dominance of the US market in the global real estate industry.
Investors in Kazakhstan's commercial real estate market are increasingly attracted to the growing demand for office spaces in the country's major cities.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Kazakhstan has been experiencing significant growth and development in recent years. Customer preferences have shifted towards modern and well-equipped office spaces, as well as retail spaces that cater to the growing middle class. This trend is driven by the increasing demand for high-quality commercial properties in key cities such as Almaty and Nur-Sultan. Customer preferences in the Commercial Real Estate market in Kazakhstan have evolved in response to changing economic conditions and global trends. With the rise of technology and the need for flexible working spaces, there has been a growing demand for modern and well-equipped office spaces. Companies are looking for spaces that can accommodate their evolving needs, such as open-plan layouts, collaborative areas, and advanced IT infrastructure. Additionally, the retail sector has seen a shift towards modern shopping centers that offer a wide range of amenities and entertainment options, as well as catering to the growing middle class. The trends in the market are driven by several factors. Firstly, the growing middle class in Kazakhstan has led to increased consumer spending, which in turn has created a demand for retail spaces that cater to their needs. This has resulted in the development of new shopping centers and the expansion of existing ones. Secondly, the government's efforts to diversify the economy and attract foreign investment have led to increased demand for office spaces, particularly in the financial and technology sectors. This has resulted in the construction of new office buildings and the renovation of existing ones to meet international standards. In addition to customer preferences and global trends, there are also local special circumstances that have influenced the development of the Commercial Real Estate market in Kazakhstan. The country's strategic location as a transit hub between Europe and Asia has attracted foreign investors and multinational companies, driving demand for commercial properties. Furthermore, the government's commitment to improving the business environment and implementing pro-business reforms has created a favorable investment climate, encouraging both domestic and foreign investors to enter the market. Underlying macroeconomic factors have also played a role in the development of the Commercial Real Estate market in Kazakhstan. The country's stable economic growth, supported by its rich natural resources and strategic investments in infrastructure, has created a positive business environment. Additionally, low interest rates and favorable financing conditions have made it easier for companies to invest in commercial properties. Overall, the Commercial Real Estate market in Kazakhstan is experiencing growth and development driven by evolving customer preferences, global trends, local special circumstances, and underlying macroeconomic factors. With the government's commitment to attracting investment and improving the business environment, the market is expected to continue to expand in the coming years.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.