Affordable housing-2020: prices to decrease

ASTANA. January 8. KAZINFORM The participants, administrators and consumers of the Affordable Housing - 2020 Program will have some amendments made to the Program soon. First of all, they will be about formation of prices. Taking into account a complex approach to addressing the tasks on providing the people of Kazakhstan with affordable housing, the Government of the country plans to ensure the reduction of prices per square meter of housing.
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The idea of this complex approach is in formation of all around plan of construction and sale of affordable housing. Realizing that the selling price depends directly on flat costs and profitability of construction, the Government of Kazakhstan plans to take decisive measures on reduction of per square meter of housing prices.

It is planned to achieve due to reduction of costs for construction materials. However, it doesn't mean the reduction of the quality. Moreover, it will even increase the quality of construction. The matter is to establish a stable domestic production of construction materials.

"Presently, the work on establishment of 16 integrated house-building factories is being held in the country and 7 of them are almost ready. 6 of these factories plan to use a large-panel construction technology, 4 factories will be using ready-made panels assembly method and 6 more will use a combined technology," First Deputy of the Ministry of Industry and New Technologies Albert Rau said.

According to Vladimir Lyutov, the head of Construction Department of Astana, the projects on establishment of 2 large house-building factories are developed in Astana. They are expected to be launched in 2014.

"I believe that the price for housing will be a level lower. It will also help to make construction processes faster. Currently, the prime cost of one square meter of housing is about 750-800 US dollars. I think it will be at the level of 500-550 US dollars after the launch of the plants. Hopefully, the costs will be even lower," V. Lyutov emphasized.

Obviously, these roughly estimated prices can be boldly considered as a sort of examples of prices formation in the regions of the country, Kazakh PM's website reported.

In fact, development of this sphere can have a multiplicative effect. It will serve as a significant reason for the reduction of prices for housing within the framework of the Affordable Housing - 2020 Program and for the change of the pricing environment all around the construction market.

However, it is all theoretical. Regarding current practical construction things, there is more news. One of the operators of the Affordable Housing - 2020 Program - Real Estate Fund "Samruk-Kazyna" decided to address the problem of the deficit of specialists in the construction sphere more comprehensively. In order to achieve this, the Fund signed a memorandum on social partnership with International Professional Academy Turan-Profi and Polytechnic College of Astana which are specialized in preparation of specialists in the construction sector.

"Real Estate Fund "Samruk-Kazyna" is a participant of the Program and we understand that we primarily need professionals for construction of new facilities and buildings. These professionals have to be familiar with new technologies in construction and trends in the sphere," Deputy Chairman of the Fund Nurlan Nurgaliyev said.

Moreover, the memorandum provides for all around support of students over the course of their education and creation of conditions for undertaking their practices in future and then employment.

"Presently, construction companies have a great deficit of qualified specialists in the sphere of construction professions. It accordingly reflects on the quality and terms of implementation of the projects. Therefore, practical work of students during their education will help to prepare students for real work," Managing Director of the Board of the Fund Mukan Zholdasov said.

It is very symbolic that the last sitting of the Government of 2012 was dedicated to the issues of execution, problems and prospective as well as current evaluation of the state of the Affordable Housing - 2020 Program. Obviously, the launch of such large scale projects cannot be absolutely perfect. However, in 2013 we will start implementation of new directions provided in the list of the program instruments for provision of the housing for the people of Kazakhstan. First of all, we are talking about the launch of the campaign on buying out of the apartments by all the categories of the people. In this regard, Prime Minister of Kazakhstan urged heads of the regions, Mayors of Astana and Almaty to correct all the mistakes and prepare for this work.

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