On June 12, 2025, the Senate of the Parliament of the Republic of Kazakhstan approved the Draft Law on shared-equity participation in housing construction.
The adoption of this draft law is driven by the need to address systemic issues in the shared-equity construction sector, in particular the significant share of the shadow segment in the market. According to an analysis conducted by JSC Kazakhstan Housing Company (a subsidiary of JSC National Managing Holding «Baiterek») in August 2024, approximately 67% of under-construction properties — around 390 residential complexes and 145,000 apartments — were being built and sold without obtaining a guarantee from the Unified Operator or permission from the local executive body (LEB).
On Mortgage Lending Procedures
It is important to note that the new law does not prohibit mortgages for housing under construction in general. Restrictions apply only to properties being sold without the LEB’s permission or the Unified Operator’s guarantee. The purpose of this rule is to prevent an increase in the debt burden on citizens investing borrowed or personal funds into risky projects without guaranteed protection of their rights in the event of a developer default. Mortgages for housing under construction will only be provided for properties with a guarantee from the Unified Operator or permission from the LEB. Mortgage lending will also include verification of a registered shared-equity agreement in the “Kazreestr” information system.
Key Provisions of the Draft Law
The draft law introduces changes in two main areas:
1. Stimulating Legal Shared-Equity Construction
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Reducing requirements for developer experience and completed project volume (from 3 years to 2 years, from 5 years to 3 years, and from 18,000 sq.m. to 10,000 sq.m., from 60,000 sq.m. to 36,000 sq.m., depending on the shared-equity participation method);
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Expanding the application of the shared-equity mechanism to low-rise and individual residential complexes;
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Allowing management companies to open not only current accounts but also savings and foreign currency accounts;
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Allowing an increase of advance payments to contractors from 25% to 50%, provided a bank guarantee is given;
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Permitting the purchase of construction materials at higher costs without adjusting project documentation.
2. Strengthening Control and Transparency
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A complete ban on concluding preliminary booking, investment, or other schemes outside the framework of the Law on Shared-Equity Participation in Housing Construction;
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A ban on advertising properties under construction that are not registered in the “Kazreestr” information system;
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Mandatory use of cashless payments between shareholders and developers to ensure an audit trail and additional protection of shareholder funds from misuse;
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Reducing construction extension periods from three extensions of 3 months each to a single extension of no more than 5 months.
These changes are expected to take effect after the document is signed by the President of the Republic of Kazakhstan.
The implementation of these measures will significantly increase market transparency, stimulate responsible developers, and provide a higher level of protection for participants in shared-equity construction.
To verify the reliability of developers, KHC has launched a digital service in the eGov Mobile app, allowing Kazakh citizens to check the legality of under-construction shared-equity projects. The service redirects users to the Housing Portal information system, which provides detailed information on all legally under-construction projects with a guarantee from KHC (a subsidiary of JSC National Managing Holding «Baiterek») or permission from the local executive body for raising shareholder funds. A similar service is available in cooperation with KHC in the mobile apps of Halyk Bank, Eurasian Bank, BCC Bank, and Jusan Bank. More details: www.homeportal.kz.
homeportal.kz
Press Service
JSC Kazakhstan Housing Company
+7 7172 797575 ext. 2550
pr@khc.kz, www.khc.kz