Housing in Bishkek is becoming more expensive due to a shortage of land

The rate of growth in housing prices is four times higher than inflation, which directly affects the affordability of real estate for the population. This was stated at a round table by Kainarbek Kuluiev, representative of the International Association of Builders.

The number of home sales transactions has decreased by 9.1%, while the total market volume in monetary terms remains high. This indicates a decline in the purchasing power of citizens.

Market participants cite the shortage of land for development, the rise in the cost of building materials, and the increase in the cost of engineering connections as the key reasons for this.

An additional factor putting pressure on prices is the complex and lengthy procedure for purchasing private houses when forming sites for multi-apartment construction.

“If a company easily buys one plot, then private owners try to sell neighboring plots at a higher price, and sometimes the price per plot can be exorbitant,” Kuluiev noted.