Why Investors from Kyrgyzstan Should Pay Attention to the Domestic Real Estate Market

How Bishkek Can Become a More Attractive Investment Choice Than Dubai

For many years, Kyrgyz investors have sought opportunities in more mature markets with developed infrastructure, such as Dubai, Turkey, and Kazakhstan. These countries attracted attention due to large construction projects and high returns. However, recent geopolitical changes, particularly the conflicts between the USA and Iran, have significantly impacted the economic situation in the region and global financial markets.

At the same time, Kyrgyzstan is demonstrating notable successes in economic development and political stability, which contributes to the active growth of the domestic real estate market. In this situation, more and more investors from Kyrgyzstan are beginning to explore local projects, where the legal environment is clearer and the prospects for long-term growth appear quite promising.

Dubai: From Inception to Modernity

Dubai was once not the large and dynamic city it is today. In the past, its real estate market was in the early stages of formation, focusing primarily on trade and small projects, with international investments being limited.

Today, Dubai represents one of the most active real estate markets in the world. In 2024, a record 180,900 transactions were registered, amounting to over 522 billion dirhams (≈142 billion USD). This corresponds to a growth of 36% in the number of transactions and 27% in their value compared to 2023.

These figures highlight the high demand for residential and commercial real estate, as well as the steady price growth in the new projects segment.

In 2025, the growth trend continued, and the total number of residential real estate transactions reached nearly 200,000, with a total value of 538.1 billion dirhams (≈146.5 billion USD) — indicating an increase of 18.9% in volume and 26.9% in value compared to 2024. The average cost of a transaction rose to about 2.69 million dirhams.

However, such rapid growth also makes the market more sensitive to changes in the global economy. Rating agencies, including Fitch, have warned of a potential significant decline in property prices in Dubai after a period of overheating if supply exceeds demand.

On international markets, price levels in Dubai are already quite high: the average cost of apartments is around 1,700–2,000 USD per square meter; in prestigious areas such as Downtown Dubai or Palm Jumeirah, prices can exceed 25,000 USD per m².

In comparison, in Bishkek, the average price of apartments in the primary market is approximately 1,400 USD per m², which is significantly lower than in most international markets.

A similar picture is observed in other cities in the region. In Almaty (Kazakhstan), the average cost of apartments is around 1,200–1,300 USD per m², while in major metropolises like Seoul or Singapore, prices in central areas can range from 8,000 to 15,000 USD per m².

This significant price discrepancy indicates that developed markets require much larger investments, and thus are associated with high risks in the face of economic or geopolitical upheavals.

Thus, the real estate market in Dubai demonstrates both great opportunities and high volatility: the sharp price increases observed in recent years could lead to a correction under the influence of external factors such as the global economy or international conflicts.

Real Estate Prospects in Central Asia: Historical Context and Current State

Unlike Dubai, the countries of Central Asia have long had a slowly developing real estate market. In the early 2000s, most transactions were in the basic housing segment, and infrastructure development was inconsistent, limiting the inflow of foreign investments.

However, over the past 5–7 years, the situation has changed dramatically due to economic growth and improvements in the investment climate.

In Almaty, the average cost of apartments in central areas increased by 15–25% from 2022 to 2024, linked to the active development of multifunctional and elite residential complexes.

In Tashkent, the supply of new apartments increased by more than 30% compared to the pre-pandemic period, driven by economic reforms and Uzbekistan's openness to foreign investments.

In Bishkek, the market is also showing positive changes: from 2021 to 2024, housing prices in central areas grew by 12–18% annually, especially in the segment of modern residential complexes. The number of new residential projects that received construction permits has increased compared to the period 2015–2018.

Moreover, the economy of Central Asia has shown steady growth of 4–6% GDP per year in recent years, creating a solid foundation for demand for residential and commercial real estate. Urbanization, the expansion of the middle class, and stable remittances from labor migrants also contribute to the increasing demand for housing in the region.

Modern residential quarters, elite apartments, shopping centers, and multifunctional complexes of the “all-in-one” format are actively emerging in cities like Almaty, Tashkent, and Bishkek.

Although the market still remains relatively young compared to global centers like Dubai, this stage of development creates advantages: higher long-term growth potential, more affordable prices, and lower volatility compared to already overheated markets.

Kyrgyz investors have the opportunity to enter a forming growth cycle rather than face a market that has already peaked and is characterized by high volatility.

Bishkek: A New Investment Point in the Central Asian Real Estate Market

Against the backdrop of significant fluctuations in many developed global real estate markets, the Bishkek market demonstrates stable and attractive growth for both local and foreign investors.

According to market data, housing prices in Bishkek have significantly increased in recent years. In 2024, the average price of apartments rose by 30.7%, reaching nearly 95,900 soms per m², while prices for private houses increased by 25.3%, indicating high interest in real estate from both buyers and investors.

The activity of transactions in the market of new residential projects has also noticeably increased. In the first eight months of 2025, the number of real estate transactions in Bishkek increased by approximately 74.6% compared to the same period last year. High demand is observed for both apartments and private houses.

The rental yield from housing in Bishkek is estimated at 7–9% per annum, which significantly exceeds the yields of many traditional financial instruments.

This data confirms that the real estate market in Kyrgyzstan is demonstrating confident value growth and providing sustainable profit opportunities — which is particularly attractive for investors interested in real assets with relatively low volatility compared to the largest international markets like Dubai.

In recent years, large urban complexes based on the “all-in-one” model have begun to develop in Bishkek, combining residential, commercial real estate, and service infrastructure in one space. An example is the Royal Central Park project, which demonstrates that the market is gradually transitioning to modern urban development models and integrated urban planning. This trend is expected to raise market standards and positively impact property values in Bishkek in the long term.

Thus, instead of following the highly volatile international markets like Dubai, investors from Kyrgyzstan can leverage the opportunities of the domestic market, where growth is stable, returns are attractive, and projects like Royal Central Park are becoming catalysts for sustainable urban development.