BAKU, Azerbaijan, January 19. On January 9,
2026, President Kassym-Jomart Tokayev's signing of the new Building
Code and amendments to the Law on Architecture, Urban Planning, and
Construction marked the commencement of a comprehensive
transformation within one of Kazakhstan's most crucial economic
sectors. On the same day, the government also approved a plan for
the digitalization of the construction industry for 2026-2027.
These reforms aim to address longstanding issues such as
transparency, budget overruns, and the proliferation of
uncontrolled construction.
As Kazakhstan's housing market continues to record unprecedented
growth in terms of both volume and transaction numbers, the need
for a transparent and efficient digital ecosystem has become
increasingly urgent.
According to the Bureau of National Statistics, the total area
of newly commissioned housing in 2025 reached 20,099.1 thousand
square meters, representing a 5.1% increase from 2024. The private
sector played a dominant role in this expansion, contributing
approximately 90% of the total construction volume.
The majority of construction remains concentrated in large
cities. In Astana, 4,812.5 thousand square meters (23.9% of the
total volume) were put into operation, followed by Almaty and
Shymkent. In 2025, 37,219 individual houses and 2,591 apartment
buildings were built in Kazakhstan, resulting in 185.8 thousand new
apartments entering the market.
December 2025 also marked a time of record property sales and
purchases, with a record number of transactions (53,128)
registered, the highest in the last three years. Among all market
regions, the Mangistau (+69.2%), Pavlodar (+66.3% compared to
November), and Aktobe (+53.6%) regions showed the largest
percentage growth.
On the one hand, active construction helps to solve the housing
problem by providing the necessary living space. On the other hand,
it creates a range of systemic issues. The rapid pace of
construction and insufficient quality control can lead to the use
of low-quality materials and violations of building technologies.
Ultimately, such errors may result in building deformations,
increased energy costs, and even create safety risks for
residents.
As the housing market entered 2026 at the height of demand, the
timely introduction of the new Building Code serves as a critical
measure to stabilize the industry, mitigate the risk of speculative
"bubbles," and prevent the emergence of prolonged construction
timelines.
The new Building Code seeks to consolidate the numerous
fragmented norms and regulations that were previously scattered
across various subordinate acts, offering a more streamlined and
cohesive framework for the sector.
A key focus of the new legislation is seismic-resistant
construction, particularly vital for regions like Almaty, where
such measures are a matter of public safety. The Code mandates
specific requirements for designing structures in seismic zones,
with land plots in these areas only being allocated for
construction after the consideration of seismic microzoning
maps.
Additionally, the concept of mandatory "passporting" for
construction projects has been introduced, ensuring that each
building is thoroughly documented with information on seismic risks
and structural vulnerabilities. This move is designed to enhance
transparency and promote safer, more resilient construction
practices across the nation.
Significant changes will also affect the digitalization of the
construction industry in 2026-2027. The entire building life cycle
will be transferred to a unified digital system, allowing all
stages of construction to be tracked and recorded.
Additionally, the introduction of a special 18-digit
construction object number (UNO) is planned. Like the Individual
Identification Number (IIN) for individuals, a unique UNO will be
automatically assigned to each building through the state urban
planning cadastre system. This number will be used to collect and
store information about the construction object, starting from the
receipt of initial materials and permits for project development,
to reconstruction, redesign, or re-equipment, and ending with final
acceptance and commissioning. This will allow efficient monitoring
of the entire building lifecycle. The introduction of UNO will
eliminate chaotic construction, as an object without an identifier
will be instantly recognized by the system as illegal.
As part of the 2026-2027 digitalization initiative for the
construction sector, the mandatory adoption of Building Information
Modeling (BIM) technology for all construction projects is set to
be implemented. Since 2023, BIM has been a requirement for the
design of technologically complex structures, and its expanded use
signals a shift from traditional architectural drawings to advanced
3D models. These models offer intricate details about every
building component, enabling the automatic calculation of material
quantities. This approach effectively prevents overestimations or
the illicit removal of materials such as reinforcement and
concrete, as any discrepancies between the digital model and the
physical structure are promptly flagged during audits.
In recent years, infill construction in Kazakhstan's urban
centers has sparked considerable debate and public protests. To
address this, the new Building Code enshrines the compulsory
inclusion of public participation in decisions concerning
construction projects. This is expected to alleviate social
tensions and foster greater trust in urban planning policies,
ensuring that development aligns more closely with community
interests and expectations.
Against the backdrop of the record growth of the construction
industry, such reforms have become essential. Further development
without digital control risked turning cities into conglomerates of
buildings with insufficient infrastructure and increased safety
risks.
In 2026-2027, housing prices may experience an uptick as
developers face additional costs associated with the integration of
digital technologies. However, in the longer term, a trend toward
price stabilization is anticipated. The elimination of "gray"
practices and the precise calculation of materials enabled by BIM
systems are expected to mitigate hidden costs, which were
previously transferred to the final consumer. This shift should
ultimately lead to greater transparency in pricing and a more
efficient cost structure within the sector.
