Review of Real Property, I quarter 2014
Astana city is a young, dynamic capital of the Republic of Kazakhstan. It is the biggest business, diplomatic, commercial and cultural center.
Over the period of the last 15 years there has been strong growth in supply and demand for the housing of the business and elite classes, due to the transfer of the capital, and to the development of its economic and political status. All governmental organizations, diplomatic missions of 44 countries and 113 joint ventures and foreign enterprises are located here.
Currently, the greatest interest in the segment of the business and elite housing complexes belongs to the following (according to the survey among the clients and partners of the Real Estate Agency «East House», held in I quarter, 2014):
Popularity of residential complexes
Right bank of Esil river
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«Highvill Astana» residential complexHighvill Astana is a luxury complex consisting of six high-rise residential and office buildings designed in the same architectural style and combined with green parklands. The complex is located on the right bank of the Esil River, close to many attractions and sights. It presents a new concept of the apartments, with all modern and functional internal amenities. Additional advantages of the complex are the parking, yard with gazebos, fountains and playgrounds that are protected from the wind and vehicle access, large recreational areas, reliable security, a large supermarket, school and pre-school system, a swimming pool and fitness clubs, an inquiry office. |
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«Star of Astana» residential complex"Star of Astana" residential complex offers comfortable and safe residence at the embankment of the Esil river. The property consists of two buildings and a binding glass gallery that are built in accordance with the modern engineering and construction technology with environmentally friendly materials. The magnificent views of the park and the city skyline, spectacular architecture of the facade, night lighting of the building give easy visual perception, and won’t leave indifferent. Comfort is created by the green hedges of the yard, playgrounds and sports-grounds, infrastructure (shops, restaurants, schools and kindergartens), convenient parking. |
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«Arman» residential complexThe residential complex "Arman" is conveniently located on the bank of the river Esil, which is an ensemble of the modern buildings that fully comply with notions of modern housing. The complex has all services, which you may only think of that are required for a comfortable residence. There is a fitness center, restaurants, shops and an atelier. The fenced yard and twenty-four-hour reliable security service ensure maximum safety for the tenants. The embankment is ideal for evening and day walks. Lovely view of the embankment is complimented by the central park, located on the other side of the river. |
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«On Bokeikhan street» residential complexesThe residential complexes are located in one of the most beautiful areas of Astana – on the embankment of the Esil river and include a small group of buildings located in the standalone area. Residential complexes are located in one of the nicest areas in Astana - on the embankment of the Esil River and include twenty-four-hour security and surveillance system, playgrounds, lawns and flower beds – everything is supposed to give residents more comfort and safety. Within the walking distance from apartment complexes, in a standalone building, there is a heated parking, as well as supermarkets, cafes, restaurants and a lot more that complement the life of the modern urban citizen. |
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«Prestige » residential complexesTwelve-storey residential complex "Prestige" rises on the embankment of the Esil River, near the pedestrian bridge Seruen. The complex complies with the highest engineering and construction requirements. Noble gray, classic elements on the facades, stained glass windows create a pleasant experience. Quiet park atmosphere and developed infrastructure make the complex attractive for the living. The variety of restaurants, boutiques, beauty salons, pharmacies, schools, kindergartens, shops located nearby are available to the tenants of the complex. There is an equipped playground, guest parking, mini-park and recreation place located on the enclosed area. |
Left bank of the Esil river
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«Triumphant» residential complexes"Triumphant" is one of the most prestigious residential complexes of the capital, located in a respectable area of the left bank. The buildings are revetted with natural stone - travertine. The exterior walls are constructed of heatblock with additional insulation. The apartments of the complex are equipped with "heated floor" system, the multi split system operating in cooling and heating modes, which allows the setting of the comfortable temperature in each room. The complex has an external local area, and an enclosed yard. Everything has been thought so that both adults and children are at home here. There is a well-equipped playground, greenery, bright colors of the blooms, comfortable gazebos near the fountains. |
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«Nursaya» residential complexesThe unique residential complex "Nursaya" is located on the left bank of the Esil River , near the remarkable sightseeing places of the capital. The total area of the complex is one hundred thousand square meters, where a few apartment blocks and a 16 - storey business center are conveniently located. The architecture, shape and number of storeys of the buildings, planning and interior space of the apartments, overall technical and functional infrastructure of the complex have been thought out in the smallest details during the design and construction process. The ideal infrastructure makes it available to have in close proximity a medical center, a fitness club, a shopping center, a playground and a private kindergarten. |
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«Kaskad» residential complexThe administrative- residential complex "Kaskad" is built on the left bank, opposite the business center "Ranco", which unites the offices of the majority of the embassies and diplomatic missions in Astana. The complex consists of several residential buildings and a building of the business center. The apartments are spacious, and have high ceilings. The shopping and entertainment complex «Mega Astana», Capital circus, the entertainment center "Duman" with the most interesting oceanarium , and the city park are located nearby. |
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«Triumph of Astana» residential complexThe majestic residential complex "Triumph of Astana ", which has become the hallmark of the capital, consists of seven sections of variable height. The windows of cozy apartments offer beautiful views of the attractions of the left bank. The monumental architecture is the distinctive feature of the complex, the construction of which was carried out taking into account the new trends in the construction and engineering (high-speed silent elevators, fire extinguishing systems, ventilation). The developed infrastructure makes it possible to spend free time without any need to go outside of its boundaries (with the gym, twenty-four-hour medical post, cafes, restaurants and much more). There are centers of entertainment and commerce near the complex. |
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«One the Water Green boulevard» residential complexThe administrative- residential complex "On the Water Green Boulevard" is located in the business center of Astana adjacent to the Presidential Palace, “Baiterek” monument and the round square. The "high-tech" style, which is the style of the complex, is fully integrated into the modern pace of life. Repeated simple shapes create asymmetric dynamic composition; the area has been turned into a cascade of parks, playgrounds and numerous tracks. The skillful combination of geometrical shape and arrangement of the internal comfort, create a sense of stability, reliability and comfort. |
Other complexes should also be noted, «Atameken», «Grand Alatau», «Ak Bulak» micro district are located on the right bank of the Esil river; «Green Village», «Zhansaya», «Northern lights» are on the left bank.
AVERAGE RENTAL FEES FOR THE RESIDENTIAL HOUSING IN THE 1ST QUARTER, 2014
(stated in USD)
| Name of the residential complex | 1 bedroom | 2 bedrooms | 3 bedrooms | 4 bedrooms | 5 bedrooms and more |
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| Right bank | «Highvill Astana» | 2 000 | 3 200 | 4 500 | 5 800 | 10 000 |
| «Star of Astana» | - | 3 000 | 6 000 | 8 000 | - | |
| «Arman» | - | 4 000 | 6 000 | 8 000 | 10 000 | |
| «On Bokeikhan street» | 1 800 | 2 500 | 4 000 | 5 600 | - | |
| «Prestige » | 1 800 | 2 800 | 4 000 | 5 800 | - | |
| «Atameken» | 1 800 | 2 700 | 3 900 | 4 800 | 8 000 | |
| «Grand Alatau» | 1 500 | 2 300 | 3 000 | 4 500 | - | |
| «Ak Bulak»microdistrict | 1 700 | 2 600 | 3 800 | 4 800 | 8 000 | |
| «Altyn Orda» | 1 800 | 2 300 | 3 800 | 4 600 | 8 000 | |
| «Gorodskoi romance» | 1 600 | 2 500 | 3 500 | 4 200 | - | |
| Left bank | «Triumphant» | 2 000 | 3 000 | 4 200 | 5 000 | - |
| «Nursaya» | 1 700 | 2 500 | 4 000 | 5 000 | - | |
| «Kaskad» | 2 000 | 2 800 | 3 900 | 5 000 | 6 500 | |
| «Triumph of Astana » | 1 800 | 2 500 | 3 500 | 5 000 | 6 500 | |
| «One the Water Green boulevard» | 1 700 | 2 500 | 3 800 | 4 700 | - | |
| «Green Village» | - | 5 000 | 7 000 | 10 000 | 12 000 | |
| «Zhansaya» | 1 700 | 2 500 | 3 600 | - | - | |
| «Northern lights» | 1 800 | 2 600 | 3 700 | 4 500 | - | |
| «Rixos khan shatyr» | 3 500 | 6 000 | 8 000 | - | - | |
| «Asem kala» | 2 200 | 3 200 | 4 500 | 6 000 | 7 200 | |
| «Diplomat» | 1 800 | 2 500 | 3 500 | - | - | |
| «International trade centre» | 1 800 | 2 400 | 3 200 | 4 000 | - | |
| 300 - 500 sq.m. | 500 - 750 sq.m. | 750 - 1000 sq.m. | ||||
| Houses | Komsomolskiy village | 7 000 - 9 000 | 9 000 - 13 000 | 12 000 - 18 000 | ||
| Karaotkel village | 7 000 - 9 000 | 9 000 - 13 000 | 12 000 - 16 000 | |||
| Diplomatic village | 7 500 - 9 000 | 10 000 - 15 000 | - | |||
| Chubary micro district | 4 500 - 7 000 | 7 000 - 10 000 | 10 000 - 12 000 | |||
| Ak Bulak micro district | 8 000 - 10 000 | 9 000 - 12 500 | 12 000 - 15 000 | |||
According to the results of the 1st quarter, 2014 the demand for rental housing of the business and the elite categories has risen slightly by 1,5 %. The growth of the prices has been fixed at 3 % compared with the quotation for similar properties in the IV quarter, 2013.
RENTAL FEES FOR THE APARMENTS
(Comparative Analysis for IV quarter, 2013 and I quarter, 2014)
| 1 bedroom | 2 bedrooms | 3 bedrooms | 4 bedrooms | 5 bedrooms and more | |
| IV quarter, 2013 | 1 796$ | 2 813$ | 4 127$ | 5 413$ | 8 339$ |
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I quarter, 2014 |
1 895$ | 2 973$ | 4 336$ | 5 542$ | 8 411$ |
The main determinant of pricing in the rental market for the elite housing still remain:
- Location (district, neighborhood, the view of the city attractions, water view);
- Apartment characteristics (well renovated/remodeled apartment, interesting design);
- Individual architecture of the building, qualitative construction materials;
- Engineering and technical infrastructure of the housing;
- Availability of the security system in the apartment and in the entrance hall;
- Service level in the house (concierge service, twenty-four-hour security, housekeeping service, saunas, sports and fitness facilities, swimming pool, playground, etc.);
- Availability of the ground and underground parking.
The main part of the rental market demand of the business and elite real estate in the 1st quarter, 2014 was for the apartments with the area of 120 - 160 square meters with two bedrooms, as well as for the apartments of 160 - 200 square meters with three bedrooms in residential complexes with infrastructure and underground parking.
Conclusions
Based on the «East House» Real Estate Agency experts' evaluation there is the growth trend of the demand against the reduction of the supply (the rate of construction volume is behind the rate of consumer needs for the housing in price group) in the segment of residential real estate of the business and elite classes in Astana, which causes a rise in prices.
When it comes to luxury accommodation, the average prices simply reflect the general market trend. Each transaction is unique and may differ from the price of the average market at times - either higher or lower.
The demand for comfortable accommodation is steadily increasing, and in the opinion of the «East House» Real Estate Agency experts will be stable in the coming years. Astana city is experiencing a constant influx of new solvent tenants who prefer housing of the elite segment.
A sharp change in the exchange rate in the 1st quarter, 2014 had no significant impact on the real estate market of the business and elite classes.