Kazakhstan Construction Growth Slows to 15.3%
Kazakhstan’s construction sector maintained double-digit growth in January-July 2026, with real construction output rising 15.3% year on year and the value of completed work reaching 5.061 trillion tenge. Growth slowed from 18.5% in the same period of 2025, but construction remains the fastest-growing major sector included in the country’s short-term economic indicator. Housing completions, by contrast, increased only 3.9%, showing that infrastructure and non-residential projects are playing a major role in the current expansion.
Kazakhstan’s Construction Market Exceeds 5 Trillion Tenge
Construction work completed in Kazakhstan during the first seven months of 2026 was valued at 5.061 trillion tenge. The physical volume index stood at 115.3% of the January-July 2025 level.
Construction and repair of structures was one of the main drivers, rising 19.5%. Roads, railways and metro projects represented the largest category, accounting for 24.7% of total construction work. Non-residential buildings contributed another 21.4%, while residential buildings represented 13.4%.
Regional performance varied sharply. Construction expanded in 18 regions. Ulytau reached 300.2% of its year-earlier level, effectively tripling activity. Kyzylorda increased 34.9%, Pavlodar 32%, Atyrau 27.9%, Turkistan 25.7%, East Kazakhstan 24.5%, Abai 23.1% and Kostanay 22.3%. Almaty city recorded growth of 23.3%.
Zhetisu, however, contracted by 21%, while Karagandy declined 19.8%. The full breakdown is published by Kazakhstan’s Bureau of National Statistics.
Growth Moderates From a Strong 2025 Base
The current expansion follows an exceptionally strong previous year. Construction work increased 18.5% in January-July 2025 and was valued at 4.074 trillion tenge.
Road, rail and metro infrastructure represented 23.9% of construction activity at the time, non-residential buildings 21.9% and housing 13.4%.
The nominal value of construction has therefore increased by roughly 24% over the past year, while real activity rose 15.3%. The difference reflects, among other factors, changes in construction prices and costs. For comparisons across years, the physical volume index provides a more meaningful measure than current-value spending alone.
Construction Outpaces Kazakhstan’s Other Major Sectors
Kazakhstan’s short-term economic indicator rose 4.9% year on year in January-July 2026.
Construction led the main sectors with a 15.3% increase. Transportation and warehousing grew 7.4%, trade 5.9%, agriculture 5%, communication 4.3% and industry 3%.
The indicator is based on agriculture, industry, construction, trade, transport and communication, which together account for more than 60% of GDP. Construction is therefore expanding more than three times as fast as the combined short-term indicator.
Astana Remains Kazakhstan’s Largest Construction Market
Astana remains the country’s largest regional construction market by value. Work completed in the capital reached 708.2 billion tenge in January-July, equivalent to 14% of Kazakhstan’s total.
Real growth, however, was only 3.4%.
Almaty ranked second with 560.6 billion tenge, or 11.1% of national construction output. Its physical volume increased by a much stronger 23.3%.
Together, Kazakhstan’s two largest cities account for roughly one-quarter of all construction work.
Housing Completions Rise Just 3.9%
Housing is growing much more slowly than overall construction activity. Kazakhstan commissioned 9.746 million square metres of residential property during the seven-month period, an increase of 3.9%.
Apartment buildings accounted for 6.546 million square metres and individual houses for 3.158 million.
Private developers delivered 9.289 million square metres, equivalent to 95.3% of the total. Of that amount, households themselves commissioned about 3.321 million square metres.
Including residential and non-residential property, the total area of new buildings commissioned reached 12.339 million square metres.
The gap between 15.3% growth in construction activity and only 3.9% growth in housing completions is significant. Kazakhstan’s current construction expansion is therefore broader than a residential building boom.
Astana Delivers 2.2 Million Square Metres of Housing
Astana remains the country’s largest housing market in absolute terms. The capital commissioned 2.201 million square metres during January-July, representing about 22.6% of Kazakhstan’s total.
Growth was only 0.5% year on year. Apartment buildings accounted for 2.153 million square metres, up 3.1%, while individual housing reached 47,900 square metres, an increase of 36.1%.
Fixed-capital investment in the capital reached 1.295 trillion tenge, up 2.7% in comparable prices, according to the Bureau’s regional statistics.
Astana’s modest percentage increase therefore reflects a high base rather than weak construction activity.
Fixed-Capital Investment Reaches 11.46 Trillion Tenge
Investment continues to support the construction cycle. Kazakhstan recorded 11.464 trillion tenge of fixed-capital investment in January-July, 7.7% more than a year earlier in comparable prices.
Construction and capital repairs of buildings and structures accounted for 62.1% of expenditure, while machinery, equipment and vehicles represented 33.6%.
Companies’ own funds remain the dominant source of financing, providing 7.767 trillion tenge, or 67.7% of total investment. Their share rose from 64% a year earlier.
Budget financing fell to 14% from 22.4%, with the absolute amount declining 32%. Bank lending increased its share from 3.5% to 5.6%, while other borrowed funding rose from 10.1% to 12.7%.
Industry attracted 41.6% of all fixed-capital investment. Real estate activities received 18.6%, or 2.129 trillion tenge, and transportation and warehousing accounted for 17%. Investment directed specifically to real estate activities increased just 1.9% in comparable prices, far below the overall investment growth rate, the official investment data show.
The composition of financing therefore matters increasingly: the investment cycle is relying more heavily on corporate funds and borrowing while the budget’s share is shrinking.
Private Companies Perform 90% of Construction Work
Private construction organisations performed 90.1% of all work during the period. Foreign-owned organisations accounted for 9.2%, while state-owned construction companies represented just 0.7%.
Those figures describe the ownership of contractors, not the ultimate source of financing. A privately owned company may construct a publicly funded road, hospital or school.
The 0.7% share of state-owned contractors therefore does not mean public money plays only a marginal role in construction. State-budget funds still provide 14% of Kazakhstan’s total fixed-capital investment.
Kazakhstan Forecasts 18.5 Million Square Metres of Housing
Kazakhstan’s Ministry of Industry and Construction forecasts 18.5 million square metres of housing completions for the full year.
That would be below the record 20.1 million square metres commissioned in 2025, when the country exceeded its 19.2 million-square-metre plan. The largest 2026 housing volumes are expected in Astana, Almaty and Shymkent.
The 9.746 million square metres completed by the end of July represents about 52.7% of the full-year forecast. A simple extrapolation is unreliable because housing completions are seasonal and substantial volumes are often delivered later in the year.
The 18.5 million-square-metre figure is officially described as a forecast rather than a binding target. The government also says the final volume could be higher if additional support measures are implemented, according to the Prime Minister’s official information service.
As International Investment experts report, Kazakhstan’s 15.3% construction growth confirms that the country remains in a strong investment cycle, but the headline number may overstate the momentum in residential real estate. Housing completions rose only 3.9%, investment in real estate activities increased just 1.9%, and regional performance ranges from a tripling of construction in Ulytau to declines of around 20% in Karagandy and Zhetisu. The falling share of budget financing also makes activity more dependent on corporate balance sheets and access to credit. For investors, the region, asset type, financing structure and depth of end-user demand are therefore more informative than the national construction growth rate alone.
FAQ: Kazakhstan Construction in 2026
How fast is Kazakhstan’s construction sector growing?
Real construction activity increased 15.3% year on year in January-July 2026, while completed work was valued at 5.061 trillion tenge.
Why did the nominal value rise faster than 15.3%?
Construction work was worth 4.074 trillion tenge in January-July 2025 and 5.061 trillion a year later. Those figures are measured at current prices. The 15.3% physical volume increase adjusts for changes in prices and therefore provides a better measure of real activity.
What types of construction dominate the market?
Road, railway and metro construction accounts for 24.7% of all work, followed by non-residential buildings at 21.4% and residential buildings at 13.4%.
How much housing has Kazakhstan completed in 2026?
The country commissioned 9.746 million square metres in January-July, 3.9% more than a year earlier.
What is Kazakhstan’s full-year housing forecast?
The Ministry of Industry and Construction forecasts 18.5 million square metres of housing completions in 2026. Kazakhstan completed a record 20.1 million square metres in 2025.
Where is construction growing fastest?
Ulytau leads by a wide margin, with activity roughly tripling. Kyzylorda, Pavlodar, Atyrau and Turkistan also recorded strong growth.
What is Kazakhstan’s largest construction market?
Astana leads with 708.2 billion tenge of construction work in the first seven months, or 14% of the national total. Almaty ranks second at 560.6 billion tenge.
How is Kazakhstan’s investment cycle financed?
Companies’ own funds provide 67.7% of fixed-capital investment. The state budget accounts for 14%, bank loans for 5.6% and other borrowed funds for 12.7%.