On August 31, 2025, amendments to the Law of the Republic of Kazakhstan “On Participation in Shared-Equity Housing Construction” (hereinafter – the Law) came into effect. The amendments expand the scope of shared-equity construction mechanisms and establish new rules for developers and equity participants.
Now, JSC “Kazakhstan Housing Company” (a subsidiary of JSC “NUH Baiterek”) provides guarantees for the completion of shared-equity construction not only for multi-apartment residential complexes but also for low-rise residential buildings (up to 5 floors) and complexes of individual residential houses (cottage towns of 50 or more houses).
In addition, the Law establishes new incentives for developers:
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Reduction of minimum experience from 3 to 2 years.
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Lowering the threshold for completed areas:
From 18,000 to 10,000 sq.m. for the cities of Astana, Almaty, and Shymkent.
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Authorized companies can open not only a current account but also savings and foreign currency accounts in one second-tier bank (under monitoring by the engineering company).
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Increased advance payments to contractors:
From 10% to 20% without collateral.
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Possibility to purchase construction materials exceeding the cost indicated in the design estimate without mandatory adjustments.
The law also introduces stricter requirements:
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Ban on entering into any preliminary agreements, such as reservation or investment agreements, except for shared-equity participation agreements (SEPA).
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Ban on advertising properties not listed in the “Kazregister” information system.
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Increase in administrative fines: from 300 to 2,000 MCI (from KZT 1 million to 7.4 million) for illegal attraction of equity participants’ funds or dissemination of false advertising.
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Ban on issuing mortgage loans by second-tier banks for the purchase of under-construction housing without the akimat’s permission to attract equity participants or a guarantee from the Single Operator (KHC).
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Mandatory cashless settlements for under-construction housing and registration of all shared-equity participation agreements in the “Kazregister” system.
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Reduction of the permissible extension period for construction: from 9 months to 5 months (once).
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Prohibition on obtaining a new guarantee within 3 years after a guarantee case occurs on a project.
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If a second-tier bank participates in the project, a tripartite agreement is concluded between the bank, the authorized company, and the engineering company, with the latter having access to account operations. The bank may decide on simultaneous use of equity participants’ funds and loan funds.
It should also be noted that the guarantee contribution for the first developer guarantee for projects implemented outside cities of national significance is 0% (subject to compliance with equity participation requirements).
In addition, the conditions for concluding a contract with the engineering company have been amended. Upon a positive decision on the guarantee, KHC concludes a tripartite agreement with the authorized company and technical supervision provided by the authorized company. Technical supervision must comply with the requirements of Article 21 of the Law of the Republic of Kazakhstan “On Participation in Shared-Equity Housing Construction.”
The amendments also extended the period for correcting comments on a guarantee application from 5 to 10 business days (the application review period is suspended). At the same time, the overall period for KHC to review the application remains 20 business days.
The adopted amendments create new opportunities for developers and strengthen control over the transparency of attracting equity participants, reducing investment risks in questionable projects for citizens.