A new mechanism is being implemented in the country aimed at demolishing old and emergency housing, which is intended to protect the rights of property owners and accelerate the process of updating the housing stock. One of the main aspects of the new scheme will be the participation of the Kazakh Housing Company (KZhK) as a guarantor for the completion of construction. According to a plan developed in collaboration with the relevant ministry, the state will undertake the obligation to complete the projects even if the developer becomes insolvent.
The seriousness of the situation is confirmed by data: nearly 50% of apartment buildings in the country (about 138,000 in total) have been in operation for over 50 years. Currently, more than 3,600 facilities have been recognized as emergency or dilapidated, with the highest number of such buildings concentrated in Almaty, the Ulytau region, and the West Kazakhstan region. In Astana, 178 buildings have been identified as posing a danger to residents. As part of a large-scale program, it is planned to relocate about 40,000 citizens to modern apartments by 2029.
The foundations of the legal system for the new mechanism are laid out in the updated Construction Code, which will come into full force on July 1, 2026. The reform includes the simplification of bureaucratic procedures, such as allocating land plots without auctions, as well as expanding the powers of akimats in managing renovation areas. A key element of interaction will be a tripartite contract between the developer, local authorities, and KZhK. Developers, in turn, will have to meet strict requirements: having at least two years of experience in the market, a capital of no less than 10% of their assets, and providing temporary housing for residents during construction.
Citizens will be offered two options: either sell their old property to the state or participate in shared construction. In the latter case, the transaction will be protected by registration in the "Kazreestr," as well as a guarantee from KZhK, which will allow the use of mortgage instruments from the "Otbasy Bank" without additional collateral. The National Chamber of Entrepreneurs "Atameken" emphasizes the high investment attractiveness of this model, as it reduces the burden on the budget by utilizing existing engineering networks in old districts. However, experts point out that successful implementation depends on finding a compromise between the interests of residents and the demands of business.
