Rental rates remained at the same level, according to Oldypak LP property 2022 report.
Chairman of the Association of Management and Service Companies QAZPROPERTY Kairat Kokenov voiced a forecast of the commercial real estate market.
“Forecast on the market of Nur-Sultan and Almaty. What do we expect to see in the medium term? Probably no new premises will be commissioned at the moment, the existing ones will be completed. There will be a reduction in supply of quality office and retail space. Most likely, we will not observe any active investments, and we will choose reconstruction or construction of existing areas, “- Kairat Kokenov said at the conference “Real Estate in the Crisis. Threats and prospects.
According to Oldypak LP property 2022 report, rental rates of commercial real estate remained at the same level. The growth of rates is restrained by the level of business activity. However, in the short term there will be an increase in rental rates for quality premises. In the case of equalization of rates and payback of projects at 7-8 years will show the interest of investors in investing in commercial real estate, says the head of the association.
Also Kairat Kokenov told about losses of construction companies because of the introduction of the anti-Russian sanctions.
“In the construction industry we see a big deficit of materials and equipment, some of which we supplied from Russia. Russia has banned the export of a number of materials and equipment. These issues are being solved, but it affects the timing and cost of construction. There are also difficulties with logistics of materials and equipment from foreign countries, because we use a significant amount of foreign quality equipment and materials. At the moment we can no longer predict the cost of projects. We are reviewing the financial model,” he explained.
Kairat Kokenov noted an increase in the cost of building maintenance due to rising prices for household chemicals, paper products, consumables, etc.