Output indices for the key categories of building materials
According to the State Program of the Industrial and Innovative Development of Kazakhstan for 2015-2019 (SPIID), production of building materials is still a priority of the national manufacturing industry.
The market of building supplies has a huge potential for its further development. Available resources precondition an expanding growth of the production capacities of Kazakhstani enterprises with a view to meet the needs of the domestic market and decrease the dependence upon imported goods and commodities. However, as of now, governmental support provided under the auspices of SPIID 2015-2019 still remains the critical driver of the development of this sector.
Market of building supplies of Kazakhstan: commercial concrete, building brick, mortar mixtures
Over the last 3 years, Kazakhstan has witnessed 40 % increase of the overall quantity of square meters of commissioned new housing.
It is also obvious that this index will grow even more. First of all, the demand for the real estate will be supported by the on-going growth of the population of Kazakhstan.
The population of the country is growing at the annual rate of 1 %. The natural growth achieves 15.5 %, in the developed countries this parameter varies from 8 to 12 % and in Russia it equals 12.7 %. Secondly, the demand for the real estate has been dramatically stimulated by the launch of the State Program of Nurly Zher which provides subsidies to developers and potential residents of new houses. The Programs will last for 15 years. It is expected that the total quantity of the new commissioned housing will increase by 1.5 times and arrive at 17 million square meters by 2020.
Dynamics of the total commissioning of housing in Kazakhstan over the last 3 years
Builders of Kazakhstan
As of November 30th, 2017, there are 25 886 building contractors officially registered in Kazakhstan. The two capital cities -Astana and Almaty – attract most of such businesses, followed by South Kazakhstan Oblast, Karaganda Oblast and Almaty Oblast.
Kazakhstan Market Analysis for commercial concrete, brick and mortar mixtures
Concrete, brick and mortar mixtures are critical elements of any building or structure.
Analysis of the external trade of Kazakhstan in these three products has been done on the basis of FEACN codes as follows:
Commercial concrete - 3824501000;
Brick - 6904;
Mortar mixtures - 3824509000.
Calculation of the capacity of the Kazakhstan market of building materials for 2014-2016
* Data as of January-September 2017
** Rated data, approximately 50 bricks in 1 square meter, weight of 1 brick is 2.5 kg. Trade turnover is calculated in ths. square meters.
Building materials sales breakdown by oblasts of Kazakhstan for 2016-2017
Not every oblast of Kazakhstan produces and sells building materials beyond its borders. For instance, commercial concrete is produced and sold everywhere in Kazakhstan. Building brick is mostly supplied by the producers of Akmola, Aktobe, West Kazakhstan, Karaganda, South Kazakhstan, East Kazakhstan oblasts and the cities of Astana and Almaty. Mortar mixtures are typically supplied by the regions which produce the building brick.
* Data as of January-September 2017
Manufacturers of building materials
The below chart shows the regional concentration of the building materials manufacturers of Kazakhstan. Most of them are located nearby the two capital cities, namely, Almaty (174 companies) and Astana (143 building contractors)
Building materials prices
In September 2017, the average prices of the building materials supplied by the local manufacturers were as follows:
Concrete – 5 995 tenge for 1 ton;
Brick – 15 331 tenge for 1 square meter;
Mortars and dry mixes – 32 300 tenge for 1 ton.
Building materials market forecasts in Kazakhstan
Despite the registered decrease in the market capacity for the said construction materials (concrete, brick, building mixtures) in 2016 as opposed to 2014, Nurly Zher State Program aimed for the development of the housing resources will continue to stimulate the demand for the real estate for the upcoming 15 years. The Program was adopted in late 2016, but so fat the construction market of Kazakhstan has not had its full expected effect (ELIM Institute of Marketing and Sociological Research).
NURLY ZHER Program
Planned volumes of housing to be commissioned in Kazakhstan within 5 years
*These indicators will be adjusted subject to the actual funding for the respective financial years