Housing prices are skyrocketing in Bishkek, construction volumes are growing, but so are the problems facing the industry. In 2024, more than 2 million square meters of housing will be commissioned in the capital, which is almost twice as much as in previous years. However, there are many problems hidden behind the industry's growth.

According to Rafgat Khantimerov, co-founder of the Partner group of companies, housing prices in Bishkek have risen by 20% over the past year and by almost 60% since 2020. The main reasons are rising material costs and workers' wages.

“Bricks have risen in price from 6 to 12 soms, and reinforcement and lumber have almost doubled. Monolith now costs not 900, but 2,000 soms. All this directly affects the price per square meter,” Khatimirov noted.

According to him, the cost of building business-class housing is $800 per square meter, excluding land, and the starting price for buyers is $1,000. In the future, prices are expected to rise to $2,000 per square meter for premium properties.

Against the backdrop of rising housing prices, there is growing interest in small apartments — one-room apartments with an area of up to 40 square meters. This allows for a reduction in the final purchase price and maintenance costs.

“Today, this is a stable trend: people want housing that can be maintained without unnecessary hassle,” he emphasizes.

At the same time, the market faces systemic constraints. The main one is the lack of land within the city limits. A renovation program could be a solution, but the absence of legislation and problems with the redemption of old buildings are hindering the implementation of such projects.

“Sometimes two or three owners dictate prices that make renovation economically impossible. We need a transparent buyout mechanism and balanced legislation,” said Zhoomart Murataliyev, CEO of Partner Group.

In addition, the construction industry is acutely aware of the shortage of skilled workers. Workers are mainly local specialists, with foreigners more often taking on supporting roles. Large developers have already begun to invest in personnel and improve working conditions.