The president believes that mortgage housing is less expensive compared to market value.
At a meeting of the Jogorku Kenesh, President Sadyr Japarov commented on the criticism from deputies regarding the housing prices offered by the State Mortgage Company.
He emphasized that the state cannot offer mortgage apartments at cost price, even with free land transfer. The mortgage company must remain sustainable and operate in the long term.
"If we offer housing without adding value, we will have to cover expenses from the budget every year. As a result, in 10–15 years, such a company could go bankrupt and be unable to continue construction," Japarov noted.
According to the president, the authorized capital of the State Mortgage Company already amounts to 2 billion dollars. This year, 400 million dollars from the net profit of the National Bank has been allocated for the development of the program, of which 200 million is directed to the south of the country, and the remaining 200 million to the north to complete current projects and launch new ones.
The president also clarified that about 4% of all expenses go to administrative needs.
An additional surcharge of 250–300 dollars per square meter was introduced to partially cover inflation over the past 25 years. However, even with this, housing prices remain significantly lower than market prices.
The president also reported fixed prices for construction companies: 750 dollars per square meter in the regions (including about 50 dollars for transporting materials), and 700 dollars per square meter in Bishkek.
Construction companies build houses and transfer them to the State Mortgage Company, which then sells housing to the population at prices ranging from 950 to 1000 dollars per square meter with installment plans for up to 25 years.
Japarov also refuted rumors that only one person, Kanibek Tumanbaev, is engaged in construction.
"They say that Tumanbaev builds and earns alone. If any of you have a construction company, come forward. I will allocate land. If you can build at this price, please do so," he said.
At the beginning of the program's implementation, the authorities gathered construction companies and offered them to build housing in Bishkek for 700 dollars per square meter "turnkey," but many developers refused.
"They laughed and claimed that it was impossible to build for 700 dollars 'turnkey,' asking for a minimum of 900–1000 dollars. Therefore, we had to create our own system and hire those companies that agreed to work at the established price," concluded Sadyr Japarov.
