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Residential Real Estate Leases - Kazakhstan

Kazakhstan

In Kazakhstan, the Residential Real Estate Leases market market is anticipated to witness significant growth.
By 2024, the projected revenue for this market segment is expected to reach US$7.27bn.
Among the various types of leases, Apartment Leases are expected to dominate the market with a projected market volume of US$5.63bn in 2024.
Looking ahead, the revenue is projected to exhibit a compound annual growth rate (CAGR 2024-2029) of 7.77%, resulting in a market volume of US$10.57bn by 2029.
The residential real estate lease market in Kazakhstan is experiencing a surge in demand due to the country's growing urbanization and foreign investment.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Kazakhstan is experiencing significant growth and development. Customer preferences are shifting towards renting rather than buying properties, leading to an increase in demand for residential real estate leases. This trend is influenced by various factors, including changing lifestyles, economic conditions, and cultural norms.

Customer preferences: In recent years, there has been a shift in customer preferences towards renting residential properties in Kazakhstan. This can be attributed to several reasons. Firstly, changing lifestyles and a growing preference for flexibility have led individuals and families to opt for rental properties rather than committing to long-term mortgages. Renting provides the freedom to relocate or downsize without the financial burden of selling a property. Additionally, economic conditions play a role in driving customer preferences. The high cost of purchasing a home, including down payments and mortgage interest rates, has made renting a more affordable option for many individuals. Renting allows people to allocate their financial resources towards other investments or expenses.

Trends in the market: One of the notable trends in the residential real estate leases market in Kazakhstan is the growth of rental properties in urban areas. As cities continue to expand and attract a larger population, the demand for rental properties in these areas has increased significantly. This trend can be attributed to the availability of job opportunities, educational institutions, and amenities in urban centers. Another trend is the rise of furnished rental properties. Many individuals, especially expatriates or those who frequently travel, prefer furnished apartments or houses to avoid the hassle of purchasing and moving furniture. This trend has led to an increase in the number of furnished rental properties available in the market.

Local special circumstances: Kazakhstan has a unique demographic composition, with a significant proportion of the population being young and mobile. This demographic factor contributes to the preference for renting, as younger individuals often prioritize flexibility and mobility over long-term commitments. Additionally, the growing number of expatriates and foreign workers in Kazakhstan has also contributed to the demand for rental properties.

Underlying macroeconomic factors: The development of the residential real estate leases market in Kazakhstan is influenced by several macroeconomic factors. Economic stability and growth play a crucial role in driving demand for rental properties. When the economy is thriving, individuals have more disposable income and are more likely to consider renting as an option. Government policies and regulations also impact the residential real estate leases market. The government's efforts to promote affordable housing and provide incentives for real estate developers have contributed to the growth of the rental market. Additionally, favorable tax policies for landlords and tenants have made renting a more attractive option. In conclusion, the Residential Real Estate Leases market in Kazakhstan is experiencing growth and development due to shifting customer preferences, urbanization trends, and unique local circumstances. The demand for rental properties is driven by changing lifestyles, economic conditions, and cultural norms. The market is expected to continue expanding as the population grows and the economy remains stable.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.