Construction sector in Kazakhstan 2008 Development forecasts for Publication date: June 2008 Language: English

Transcription

1 Construction sector in Kazakhstan 2008 Development forecasts for Publication date: June 2008 Language: English

2 A word from the author Kazakhstan, the second largest CIS country and the ninth largest country by landmass in the world, has enormous reserves of oil and other natural resources, which fuel the economy with a stream of petrodollars. These are being used for construction of new oil extraction and transportation facilities, as well as for the rapid development of the former capital, Almaty, and the new capital, Astana, which was built from scratch. Nonetheless, many commercial and residential construction projects were carried out with the use of debt financing and this led to widespread problems for developers and construction companies when the financial crisis began in the middle of Since then, property prices have fallen remarkably to more rational levels and some development projects have been frozen due to lack of financing. The positive aspect of the recent changes in the Kazakh construction industry is that poor quality developers and construction companies are being pushed out of the market. Additionally, as property values fall, international investors become increasingly interested in investment in Kazakhstan, through acquisitions of entire, already constructed, buildings, and through participation in property development projects and equity investments in development companies. In addition to the lower prices of projects, investors are attracted by the advantageous location of the country, in the heart of Asia, and by its political stability and relative legal safety. Robert Obetkon, Construction Market Analyst 2

3 PMR MarketInsight Methodology These reports were prepared using PMR s MarketInsight Methodology. PMR MarketInsight is a methodology developed by PMR which assists in the complex preparation of industry reports. It defines the ways in which data should be collected for such reports and outlines the methods to be used in analysing the information collected in order to obtain a true picture of the market in question. It also contains special procedures to follow in the case of incomplete market. PMR MarketInsight precisely defines report content and structure. Industry reports prepared using PMR MarketInsight are based on information from a variety of available statistical, industry (specialist press, the internet), general and official sources as well as information from PMR's own database and primary research independently carried out by PMR. The sources we use are individually tailored to each project. PMR MarketInsight is the result of over 10 years of experience in conducting industry analysis on Central and Eastern European markets. MarketInsight PMR M e t h o d o l o g y 3

4 The Strategy for Road Development envisages that 19,800 km of roads will be built or modernised in Kazakhstan by Reports description Construction sector in Kazakhstan 2008 supplies all the latest details on recent market development, providing data on the industrial, commercial, infrastructure and residential market segments. It contains pertinent background information on the economy of Kazakhstan and current conditions affecting the construction industry, including the effect of the global credit crunch on property and construction markets. As cities and infrastructures are completely rebuilt, in some cases built from scratch, international investors, including construction companies, are busily making plans to expand their activities in Kazakhstan and take advantage of available opportunities in infrastructure development, housing expansion and industrial and commercial construction. Construction sector in Kazakhstan 2008 contains the most important and up to date statistical data about the economic conditions affecting the construction sector, including wages, tax structure and investment regulations, as well as analysis of current market conditions and forecasts for growth up to the year Professionals will benefit from detailed profiles of construction firms at work in the region. see how to order 4

5 Key sections Construction sector in Kazakhstan 2008 presents complete data for the country s economy as a whole, as well as treatment and analysis of each segment of the construction industry, followed by forecasts to 2010 and complete profiles of companies active in the marketplace-in these seven sections: Section One presents a detailed picture of the macroeconomic data for Kazakhstan, including figures on gross domestic product, investment and foreign direct investment and information on inflation and the exchange rate. Section Two presents complete information on the prevailing conditions in the construction market in Kazakhstan, such as output, company financial standing, and investment issues. Data on factors that influence profit such as taxes, employment and wage levels within the industry, is provided. Section Three focuses on the infrastructure development sector; where expansion is largely a function of new investment and an increase in major infrastructure improvement and replacement. Plans for roadways, airports, railways and power generation projects are revealed, along with upcoming pipeline and environmental development projects. Section Four provides data on current conditions in the non-residential construction market in Kazakhstan, a sector that is forecast to expand according to the needs of the growing economy. Offices, hotels, retail trade and service facilities and industrial and warehouse facilities will be constructed and renovated. According to the Transport Strategy , approximately $30bn will be invested in the development of transport infrastructure in Kazakhstan. Private investments are to account for 70% of the total value. see how to order 5

6 Almost 2,800 km of the planned Western Europe-Western China transport corridor is to be built on the territory of Kazakhstan. Section Five centers its attention on the residential construction sector, and programmes set to stimulate development. Data on housing stock, prices and units completed in recent years is supplied. Section Six concentrates on construction firms active on today s market, providing complete profiles that include current data on revenues, workforce, region of activity and description of core business. see how to order 6

7 Reports overview Macroeconomic conditions have a direct influence on all market sectors construction is no exception. Construction sector in Kazakhstan 2008 covers all the most important economic indicators, including: gross domestic product levels of investment foreign direct investment (FDI) inflation and exchange rates. By 2015, the government is planning to build about 1,600 km of new railway lines and to electrify another 2,700 km. Complete knowledge of prevailing conditions in the construction market is essential to those planning a profitable business strategy. This report presents current data and forecast trends, with particular emphasis on: market volume and output prevailing rates of employment and wages major construction companies and business confidence in the market cement production taxes including corporate income, value-added and land. see how to order 7

8 High quality, modern office and retail centres are being completed in Almaty and Astana, which are changing the nature of the market. Expanding and updating the Kazakhstan infrastructure provide added opportunities for construction companies and investors, as planned projects include: new roads and bridges railway expansion and new construction airport expansion and new construction environmental protection projects pipeline network expansion power generation and energy production projects. Non-residential construction represents a large portion of the construction market in Kazakhstan, as the expanding economy and additional investment fuel new businesses with a need for larger and more technologically updated facilities. 8 see how to order Construction sector in Kazakhstan 2008 provides the latest information on: the market for modern expansive office space retail trade facilities the market for warehousing spaces construction of hotels and other temporary housing facilities. Residential construction is one of the most important segments of the construction sector in Kazakhstan. This report reveals the latest data on: total housing stock the number of new housing units planned for the near future price ranges of new homes planned residential construction development programmes.

9 This report is an essential information resource for: top managers of construction companies active in the region strategic planners and executives of firms considering Kazakhstan market entry companies engaged in construction and those in production and distribution of building materials in the region architectural and consultancy firms interested in this market developers interested in the Kazakhstan market road and construction equipment producers commercial and investment banks REITs (Real estate investment trusts) and investment funds. The new residential construction development programme envisages the commissioning 2 of over 26 million m of residential space in ; 2 17 million m of this will be built by individual investors. see how to order 9

10 Selected PMR clients: 10

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