AGERE law firm > News > Mechanisms of pre-construction real estate buyers protection developed in Kazakhstan

Mechanisms of pre-construction real estate buyers protection developed in Kazakhstan

24.10.2013  |  Heading: World

Today Kazakh Prime Minister Serik Akhmetov instructed to develop the mechanisms of pre-construction real estate buyer’s protection and to submit this document to the government by November 15 at a government meeting.


Earlier, the Ministry of Regional Development proposed to insure the civil liability of developers for real estate buyers as one of the mechanisms to protect real estate buyers. However, the National Bank was against this initiative. Then, the establishment of Special Guarantee Fund was proposed as a solution. The construction companies will be obliged to regularly contribute money to the Fund. In the event if one of the companies will go bankrupt, the construction works will be completed at the expense of accumulated funds.

Kairbek USKENBAYEV, FIRST VICE MINISTER OF REGIONAL DEVELOPMENT OF KAZAKHSTAN:
- The precise mechanism of pre-construction real estate buyer’s protection should be developed. The construction companies considered the real estate buyers as the investors. The companies began to enter into individual contracts with real estate buyers as the investors. We had this problem in 2008. But it is necessary to develop certain mechanisms to protect the rights of real estate buyers.

However, 4 million and 600 000 square meters of housing was constructed as part of Affordable Housing Program within 9 months. It is planned to introduce another 2, 2 million squares meters of housing till the end of the year. At the same time, the Kazakh Prime Minister noted that certain regions showed low activity. It turned out that the Affordable Housing Program is being actively implemented in Shymkent, Ust-Kamenogorsk and Karaganda, Kostanai rather than in in the western regions, like Taraz and Taldykorgan. The head of the country criticized the implementation of Affordable Housing Program at a recent government meeting. Nursultan Nazarbayev noted that housing is still unavailable for many families and people often cannot afford to buy an apartment. The president instructed to intensify the efforts to address this social problem.

Serik AKHMETOV, PRIME MINISTER OF KAZAKHSTAN:
- The poor implementation of Affordable Housing Program results in poor management of the bank and its branches. The governors’ offices and local executive bodies are not actively cooperating. It is necessary to promote the advantages of the Affordable Housing Program, to work with local executive bodies. It is necessary to invest in the construction.

All news »

Viewings: 1057 people