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. Last Updated: 07/27/2016

Kazakhstan Real Estate Cools Off

ALMATY, Kazakhstan -- Growth in Kazakhstan's real estate prices slowed to around 50 percent year on year in November after a peak of more than 70 percent during summer months, official data showed Wednesday.

A liquidity shortage in Kazakhstan, hit hard by the global credit crunch, has weighed on many of its booming nonenergy sectors, including the real estate and construction industries.

Growth in real estate, however, remained high despite wider financial woes, with average sale prices on the secondary housing market jumping 46.5 percent to $1,100 per square meter in November, the state statistics agency said. Secondary market prices were up 73 percent year on year in August.

Average rent prices grew 23.3 percent, it said. In the financial capital, Almaty, primary real estate prices rose 58 percent in November, year on year.

Rapid growth of Kazakh banks, which have borrowed heavily on the international debt market, has fueled the real estate boom in the Central Asian state, where a growing share of transactions are carried out through mortgages.

On Tuesday, Standard & Poor's cut its outlook to negative from stable on eight Kazakh banks, saying it was concerned over rising pressure on asset quality and liquidity.

Kazakhstan's economy is not threatened by a global credit crunch and a construction slowdown may put growth on a more sustainable path, President Nursultan Nazarbayev said in November.