Recently, information spread on social networks that the construction company "Kut" is offering apartments without a down payment with an interest-free installment plan for six years. Journalists from 24.kg went to the scene to clarify the details of this promotion.
Let us remind you that a few days ago the company announced the start of sales, which attracted the attention of Bishkek residents. They have been at the main office for the fifth day, trying to finalize contracts for purchasing real estate. There are 25,000 apartments available for sale.
Apartments Without a Down Payment
The promotional materials state that apartments for self-finishing are offered at a price starting from $900 per square meter, with commissioning planned in 3.5 years. According to calculations, the monthly payment for a one-bedroom apartment of 29 square meters will be about 32,260 soms, while for a two-bedroom apartment of 50 square meters it will be about 55,600 soms.On social media, users express doubts about this promotion.
Comment from the Ministry of Construction
In the Ministry of Construction, Architecture, and Housing and Communal Services, 24.kg clarified that all documents of the company "Kut" are in order, and construction work is being carried out in stages. The department stated that it is monitoring the situation and that the company's projects will be reviewed at a technical council before providing a more detailed comment.
Opinion of Company Representatives
Sanjar Bekbaev, head of the sales department of "Kut," noted that this promotion is not the first in their practice where transactions are completed without a down payment.
“Buyers first finalize the apartment and receive a contract if they agree to the payment. We offer an installment plan without a down payment for six years, and the construction of the residential building will be completed within four years,” he specified.
The properties will be located 14 kilometers from the center of Bishkek, near the new Osh market on Vasilievsky tract.
“There will be a market, and the construction of a new microdistrict will begin. This will be beneficial for both us and other construction companies — we sell the brand, and clients come to us. Our cost price plus a small markup allows us to sell on installment. We already have nine completed projects,” he added.
Opinion of the Mayor of Bishkek on the Project
The Mayor of Bishkek, Aibek Junushaliev, stated at a press conference that the decision to purchase an apartment is a personal choice of the citizens, and the municipality does not interfere in the activities of private companies.
“Citizens, when concluding contracts, should discuss all terms — deadlines, communications, responsibilities — directly with the company. We cannot guarantee the work of a private construction firm or take responsibility for it. However, construction is underway, and anyone interested can verify on-site that the houses are indeed being built and the declared square meters exist. Decisions about purchases are made independently; we do not advertise and do not interfere in relations with the company. Information about the project is included in the General Plan,” the mayor emphasized.
All construction projects in Bishkek receive permits in accordance with the requirements of the Ministry of Construction and Architecture.
Aibek Junushaliev
To obtain an urban planning conclusion, the developer must provide technical conditions for connection to the city’s engineering networks. Without these documents, permits are not issued.
“If a construction company has a project approved by Bishkek's chief architect and a conclusion from the state expertise, then it has confirmed connection points to the networks,” he added.
The mayor advised residents to always check for the presence of permits. According to the Ministry of Construction's requirements, each project must have a QR code. By scanning it, one can see all the permitting documents. QR codes are issued only to those companies that have passed all checks and are registered for connection.
Expert Opinion on Real Estate
The founder of the real estate sales company OSK and blogger Baktiyar Kasymaliev expressed the opinion that it is important to consider the company's calculations and construction conditions in this matter.
“We often believe in a bright future and trust many. I am one of those. But I always ask construction companies what their math is. Business must be profitable. In the current conditions, it is hard for me to imagine how they can make a profit,” noted Baktiyar Kasymaliev.
According to him, the average cost price per square meter in Bishkek is $700, excluding the cost of land.
The expert added that the information about the sale of 25,000 apartments may be true, as the registration process is quite simple.
“The entry into this process is easy. Signing up is simple, but it does not guarantee that the apartment has actually been purchased. Currently, buyers have minimal risks. However, in five years, these risks may increase, as all accumulated funds may not lead to the desired result,” concluded Kasymaliev.
He also emphasized that before selling, the project must undergo mandatory document verification. It is necessary to find out whether the company is registered and whether it has all the permitting documents, including the state expertise. Without them, the company has no right to engage in real estate sales.
