Gulzat Totubaeva, head of the Public Relations Department of GIK, shared with 24.kg details about the company's activities, mechanisms for obtaining housing, prices, and the quality of the constructed facilities.
— What is the current queue for obtaining housing? How many citizens of Kyrgyzstan need housing but have not yet applied to GIK? How long will it take to provide for all those in need?
— Currently, our database lists 91,159 people across the country. Most of them, over 48,000, live in Bishkek. This list also includes participants in the program who have applied for shared construction and received approval.
While it is impossible to say exactly how many citizens do not own housing, the fact remains that there is a housing deficit.
At the moment, GIK is constructing 5.5 million square meters of housing across the country, which is equivalent to over 80,500 apartments.
Plans for 2024-2026 include the construction and provision of 463,000 square meters, which will amount to 6,882 apartments.
— So, this is significantly less compared to current figures?
— Indeed. It should be noted that GIK did not always engage in construction. In 2015, when the company first started its operations, the mortgage policy was different. We checked citizens against criteria, and then they turned to partner banks for financing. These banks decided whether to lend money or not.
Thus, until 2023, we issued only about 9,495 apartments. In the context of a deficit, this is extremely low. Many applications were rejected, which caused dissatisfaction in society.
In this regard, the leadership of the country decided that GIK would no longer cooperate with partner banks but would independently invest funds in housing construction throughout the republic. Since 2023, we have begun to build housing independently, and this is already reflected in the statistics. I believe this is a strategically correct decision.
If we had continued to work through banks, the number of refusals would have remained high, as banks strictly checked incomes. GIK has less strict criteria — the main thing is that the citizen's income is not less than the monthly payment. Before this, we had no refusals due to insolvency.
— What is the current authorized capital of GIK? The company receives funding from the budget. What will happen to the program if funding is reduced or canceled?
— Currently, the authorized capital is 87.5 billion soms. In 2015, when GIK was first established, it was only 10 million soms. The capital has increased every year. In 2017-2020, it reached 480 million soms, including profits from program participants. In 2021, there was a sharp increase in capital to 5.6 billion soms due to the budget and our profits. In 2022, we received real estate on our balance sheet, and since 2023, we have begun actively constructing houses and attracting funds from international financial organizations such as the Saudi Development Fund and the Asian Development Bank.
In the future, we plan to increase the authorized capital to 200 billion soms, after which GIK will transition to self-financing. This means that budget money will no longer be received, and we will build housing with our own funds. To this end, a shared construction mechanism was implemented in 2024 to start generating profits. We are also actively working to attract funding from various foreign institutions.
— Many are interested in why GIK receives land plots for free, yet the prices for housing are almost the same as those of private developers. Do you lack housing classes such as economy and premium, like private companies? How is the selection of apartments for citizens carried out?
— The plots are transferred to GIK in accordance with a presidential decree, and we do not purchase land from private individuals. The selection of plots is determined by the state, and we build where it is possible.
The price of apartments is set by a decision of the board of directors and is formed based on the cost of construction, which includes expenses for materials, labor, location, and inflation. All facilities are handed over with interior finishing. We pay the contractor for the entire area, while program participants pay only for the living area, which creates a significant difference in cost. As a result, we provide housing with repairs.
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We do not have distinctions between economy and premium classes. Currently, houses for 23,000 apartments are being built in Bishkek, which are several large projects. All of them have the same design. However, one of the complexes, "Yntymak," indeed differs with a higher class, and the price there will be slightly higher. For example, housing on Malikova Street costs 78,705 soms per square meter, while in "Yntymak," the price will be 87,450 soms, which is $100 more. But apartments in this building will only be provided to participants of shared construction, and we have a single mechanism for distributing apartments.
Our goal is to ensure fair distribution of housing. We act in accordance with the distribution regulations. In each residential complex, up to 50% of the apartments are allocated for participants of shared construction, while the remaining ones are divided among those in the queue. Those in the queue receive housing for 25 years at 4 or 8% without a down payment at a price of 78,705 soms per square meter, which is approximately $900. For shared construction participants, this price is 96,195 soms, or $1,100.
Although apartments for shared construction participants are more expensive, they can choose the region. For example, living in Bishkek, they can buy an apartment in Cholpon-Ata or Manas. Depending on their financial capabilities, they can also choose the size of the housing. Those in the queue do not have a choice, but we strive to distribute apartments fairly based on family composition.
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It is also worth noting that we do not build departmental houses for specific professions, such as doctors or military personnel. Everyone in the queue receives apartments in the same houses. Our regulations state that agencies that provided their land receive apartments up to 20% of the total housing stock. For example, on Malikova Street, where the colony was located, 450 employees of the State Penitentiary Service will receive apartments.
— How does GIK control the quality of construction? Criticism often appears on social media regarding this issue.
— Quality control of construction is carried out not only by us but also by other authorities. We have our own construction department that monitors quality at each site, and inspections are conducted by the State Construction Agency. Additionally, 100% of GIK's shares are owned by the Presidential Administration, which also provides additional oversight.
In construction, we use monolithic formwork technology, recognized as the most earthquake-resistant. We have a special laboratory for testing materials.
After the completion of construction and the handover of apartments to citizens, contractors are obliged to eliminate identified deficiencies within the warranty period. We issue apartments for 15 and 25 years, during which they remain on GIK's balance sheet and are under control. All houses are built within the framework of a state program approved by a presidential decree, and we pay attention to quality. Of course, various difficulties arise since the construction is large-scale, but we do not ignore identified errors and promptly correct them.
— How is the design of complexes carried out? Are the needs of residents in the area where the houses are built, such as kindergartens, schools, and hospitals, taken into account?
— Yes, we work together with local self-government bodies in the areas where construction is taking place. For example, in the area of the facility on Malikova Street, there is a city school, but there are not enough places for all students. Therefore, we provided the first floors for the needs of the school so that children could attend classes without going far from home.
However, we do not engage in the construction of entire districts but build separate facilities. If we were to build entire micro-districts, then, of course, clinics, schools, and kindergartens would also be built.
— A large part of GIK's construction is concentrated in Bishkek and Osh. What are the prospects for residents of At-Bashy or Leylek?
— We are building housing in all seven regions of Kyrgyzstan to provide as many citizens as possible with apartments. Housing is provided in the region where program participants work. That is, if a person works in Kara-Balta, housing will be provided there if they are in the queue. Participants of shared construction can choose the region.
While we cannot yet claim that we are building in every district of the country, housing is being constructed in regional centers and small towns. The order of distribution is determined by regions, so a resident of one district, even if there is currently no building under construction in their locality, will still be able to receive an apartment in the nearest facility when their turn comes.
— Will the conditions for recipients of state mortgages regarding interest rates be revised, and is there a possibility of returning to financing when citizens can choose apartments in any building, not just those built by GIK?
— It should be noted that since the establishment of GIK, the conditions of the housing program have only been revised for the better and to increase accessibility. Interest rates have been reduced from 6-14% to 4-8% depending on the category of program participants, making our conditions some of the most attractive in the mortgage lending market in the CIS.
