The property market in Kyrgyzstan is going through a challenging period. In recent years, there has been a decline in activity, a rise in housing prices and a change in buyer preferences. All this has a significant impact on the situation in the industry.

Activity in the property market continues to decline. If in 2022 there were about 50 thousand sale and purchase transactions, in 2024 this figure fell to 43 thousand. According to Aidar Sukenbayev, chief specialist of the cadastral valuation sector, such a trend is associated with a decrease in the availability of housing for citizens of the country.

In the conditions of constant price growth, one-room and two-room flats of individual type, which are easier to buy in the current economic conditions, are becoming particularly popular.

‘Today the average cost of one square metre in flats reaches $1 thousand 250, and in private houses - $1.4 thousand. The main reasons for this jump were the 30-35% rise in the price of construction materials and high inflation. Despite the fact that officially the inflation rate in 2024 was about 7%, some experts believe that the real figures may be 2-3 times higher. This has directly affected the cost of construction and, consequently, the final cost of housing,’ the expert said.

Against the backdrop of rising prices and decreasing affordability of housing, buyers are increasingly turning their attention to the primary market, in particular to share participation agreements (SPAs). A CDA involves investing in the construction of a property with the subsequent acquisition of ownership rights after the house is commissioned.

While in 2022 the share of such transactions was 9.6%, by 2024 it has increased to 19.3%. This indicates that more and more citizens prefer to invest in construction, expecting to buy housing at more favourable prices.

Among buyers of flats in Bishkek, the largest number of transactions is in the Oktyabrsky district due to the large number of multi-storey houses and new buildings. At the same time, private houses are more often purchased in Leninsky district, where land plots and individual buildings predominate.

Despite the availability of state mortgage lending programmes, there is no noticeable increase in demand for housing. According to Aidar Sukenbayev, the purchase of property remains unaffordable for most citizens, even taking into account the favourable conditions.

According to realtors, buyer interest is mostly focused on budget options, especially flats costing up to $60,000.

Interest from foreign citizens

Even for citizens of Russia and Kazakhstan, property prices in Kyrgyzstan seem high. Nevertheless, demand from foreign buyers continues to grow. If in 2022, the bulk of foreign buyers were Kyrgyz citizens with Russian or Kazakh citizenship (80%), by 2024 their share has dropped to 72%.

On the other hand, the interest from far abroad - China, Korea, Turkey and the United States - has increased significantly. Their share increased from 15% in 2022 to 28% in 2024. This is explained by relatively low property prices in Kyrgyzstan compared to their countries.