📋 Tender Overview
Project Name
Promoting Inclusive and Green Housing Finance Project
Project Number
58135-001
Country / Economy
Kazakhstan
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Technical Assistance
Source of Funding / Amount
Loan: Promoting Inclusive and Green Housing Finance
Ordinary capital resources US$ 200.00 million
TA: Promoting Inclusive and Green Housing Finance
Technical Assistance Special Fund US$ 500,000.00
Sector / Subsector
Finance / Housing finance
Gender
Description
The project will promote affordable residential mortgage loans to women and the development and funding of benchmark green mortgage products in Kazakhstan via Otbasy Bank. This will enable them to target segments of the population that are significantly underserved in the market by the private sector by providing: (i) qualified women sub-borrowers with long-term, fixed rate subloans (mortgages) in local currency to acquire or renovate housing; and (ii) qualified low-to-moderate income population sub-borrowers with long-term, fixed rate subloans (green mortgages) in local currency to acquire green, energy efficient housing or for the renovation of existing housing to improve energy efficiency.
Project Rationale and Linkage to Country/Regional Strategy
Kazakhstan faces the challenge of sustainable and affordable housing development and finance. There is a lack of affordable housing, low quality housing, limited access to land for construction, rising housing prices, and a lack of framework conditions for energy modernization of the old housing stock and the finance of green, energy efficient new housing.
Inadequate housing stock creation. One of the priorities of Kazakhstan's strategic plan until 2025 is to ensure quality and affordable housing. According to their housing policy, Kazakhstan needs to construct 20.7 million square meters of housing annually by 2025. The delivery of finance for housing creation and ownership is inefficient and at a high cost. While construction has increased in recent years (except for a slight decline in 2022), demographic growth and the "aging" housing stock contribute to a significant shortage. According to the Ministry of Industry and Infrastructure Development (MIID), more than 651,960 Kazakhstanis are on the waiting list for housing as of April 2024 under state programs. This number increases by about 10% yearly.
Low supply of affordable housing. The real estate market in Kazakhstan has been impacted by large price increases since 2008 partially instigated by various government programs and ability to use excess pension fund savings for housing acquisition. These measures contributed to a building boom, but in the higher priced sector and further contributed to speculative prices increases. The rate of YoY house price increase hit a record high of 75% in May 2022. The housing market in Kazakhstan ranks number 76 out of 104 countries as for affordability according to Numbeo.com's international ho
