Forging ahead as a regional powerhouse, Kazakhstan's construction industry is booming, with its market size soaring to USD 12.4 billion in 2023 and its growth trajectory, including a projected expansion to USD 17.5 billion by 2028, fueled by massive infrastructure spending, a dynamic mix of public and private investment, and ambitious megaprojects reshaping the nation's landscape.
Key Takeaways
- The Kazakhstan construction market size reached USD 12.4 billion in 2023, with a CAGR of 4.8% from 2019-2023 driven by infrastructure investments.
- Kazakhstan's construction industry contributed 5.7% to GDP in 2022, up from 5.2% in 2021 due to public sector projects.
- Total construction output in Kazakhstan grew by 6.2% year-on-year in Q4 2023, reaching KZT 1.8 trillion.
- Kazakhstan construction industry real growth rate was 5.9% in 2023.
- Annual growth in building construction in Kazakhstan reached 6.8% in 2022.
- Civil engineering growth rate in Kazakhstan construction was 7.1% YoY in Q3 2023.
- Construction employment in Kazakhstan totaled 450,000 workers in 2023.
- Average monthly wage in Kazakhstan construction sector was KZT 450,000 in 2023.
- Construction unemployment rate in Kazakhstan stood at 4.2% in 2023.
- Total FDI in Kazakhstan construction reached USD 2.1 billion in 2023.
- Domestic investments in construction amounted to KZT 5.6 trillion in 2023.
- Public-private partnerships (PPPs) in Kazakhstan construction valued at USD 1.8 billion in 2023.
- Number of ongoing major construction projects in Kazakhstan: 1,250 in 2023.
- EXPO 2017 legacy projects in Astana added 2.5 million sqm of facilities.
- Nurly Zhol program delivered 1,200 km of roads by end of 2023.
Kazakhstan's construction industry is expanding robustly due to major public and private infrastructure investments.
Employment Statistics
- Construction employment in Kazakhstan totaled 450,000 workers in 2023.
- Average monthly wage in Kazakhstan construction sector was KZT 450,000 in 2023.
- Construction unemployment rate in Kazakhstan stood at 4.2% in 2023.
- Number of construction enterprises employing over 100 people: 1,200 in 2023.
- Female workforce participation in Kazakhstan construction was 28% in 2023.
- Skilled labor shortage affected 65% of Kazakhstan construction firms in 2023.
- Construction sector employed 8.1% of Kazakhstan's total workforce in 2022.
- New jobs created in Kazakhstan construction: 35,000 in 2023.
- Labor productivity in Kazakhstan construction rose 4.5% to KZT 12.5 million per worker in 2023.
- Construction apprenticeships completed: 12,500 in Kazakhstan vocational programs 2023.
- Migrant workers in Kazakhstan construction: 120,000 from Central Asia in 2023.
- Safety incidents in Kazakhstan construction: 450 reported cases in 2023.
- Training hours per construction worker averaged 45 hours in Kazakhstan 2023.
- Almaty construction employment: 110,000 workers in 2023.
- Astana construction jobs: 85,000 in 2023.
- Atyrau construction workforce: 65,000 amid oil boom in 2023.
Employment Statistics Interpretation
Kazakhstan's construction industry in 2023 was a booming but paradoxical beast: it proudly created 35,000 new jobs and boosted productivity, yet it still nervously whistles for more skilled labor while trying to train up a workforce where over a quarter are women and a fifth are migrant hands.
Growth Rates
- Kazakhstan construction industry real growth rate was 5.9% in 2023.
- Annual growth in building construction in Kazakhstan reached 6.8% in 2022.
- Civil engineering growth rate in Kazakhstan construction was 7.1% YoY in Q3 2023.
- Residential construction growth in Kazakhstan slowed to 4.2% in 2023 from 5.5% in 2022.
- Non-residential construction expanded 8.4% in Kazakhstan in 2023.
- Infrastructure construction growth rate hit 9.2% in Kazakhstan for 2022-2023.
- Kazakhstan construction output index rose 5.7% in January 2024 compared to January 2023.
- Forecasted CAGR for Kazakhstan construction market is 5.3% from 2024-2028.
- Construction investment growth in Kazakhstan was 11.2% in real terms in 2023.
- Volume of construction works growth was 6.4% across all regions in Kazakhstan 2023.
- Almaty region's construction growth led at 7.8% YoY in 2023.
- Astana (Nur-Sultan) construction sector grew 6.9% in 2023.
- Shymkent construction growth rate was 5.1% in 2023.
- Atyrau oil-rich region's construction boomed 10.3% in 2023.
- Aktobe construction growth was 4.7% amid industrial projects in 2023.
- Pavlodar construction expanded 6.2% due to energy infrastructure in 2023.
- Mangystau construction growth reached 8.9% from offshore projects in 2023.
- East Kazakhstan construction grew 5.4% with mining support in 2023.
- West Kazakhstan construction rate was 7.5% YoY in 2023.
Growth Rates Interpretation
Kazakhstan’s construction industry is galloping ahead on the back of booming infrastructure and oil-driven regions, even as residential building takes a more cautious stroll.
Investment and Finance
- Total FDI in Kazakhstan construction reached USD 2.1 billion in 2023.
- Domestic investments in construction amounted to KZT 5.6 trillion in 2023.
- Public-private partnerships (PPPs) in Kazakhstan construction valued at USD 1.8 billion in 2023.
- Bank loans to Kazakhstan construction sector totaled KZT 2.4 trillion in 2023.
- Foreign direct investment from China in Kazakhstan construction: USD 850 million in 2023.
- Construction bonds issued in Kazakhstan market worth KZT 1.2 trillion in 2023.
- Government budget allocation for construction: 12.5% or KZT 4.1 trillion in 2023.
- Private investment share in Kazakhstan construction: 58% of total in 2023.
- Venture capital in Kazakhstan construction tech startups: USD 45 million in 2023.
- Cost overrun average in Kazakhstan mega-projects: 15% in 2023.
- Construction material import value for Kazakhstan: USD 3.2 billion in 2023.
- Inflation impact on Kazakhstan construction costs: 8.7% rise in 2023.
- PPP projects pipeline in Kazakhstan construction: 25 projects worth USD 10 billion.
- EU investments in Kazakhstan green construction: USD 320 million in 2023.
- Turkish contractors won USD 1.5 billion in Kazakhstan construction tenders 2023.
- South Korean investment in Kazakhstan infrastructure: USD 750 million in 2023.
Investment and Finance Interpretation
Kazakhstan's construction sector is a high-stakes international poker game where the government is all-in with public funds, private players are holding a strong majority of the chips, and everyone is nervously watching the inflation dealer and the cost overrun river card.
Major Projects and Developments
- Number of ongoing major construction projects in Kazakhstan: 1,250 in 2023.
- EXPO 2017 legacy projects in Astana added 2.5 million sqm of facilities.
- Nurly Zhol program delivered 1,200 km of roads by end of 2023.
- Almaty Light Rail Transit project cost USD 600 million, completed 2023.
- Tengiz oil field expansion construction valued at USD 37 billion ongoing.
- Karaganda industrial park construction covers 500 hectares, USD 2 billion invested.
- Astana New City residential complex: 1 million sqm under construction 2023.
- Atyrau Airport expansion project: USD 250 million, operational 2024.
- Shymkent Oil Refinery upgrade: USD 5.5 billion, key infrastructure project.
- Caspian Sea port Aktau expansion: USD 400 million dredging and terminals.
- Almaty Metro Line 2 extension: 10 km, USD 1.2 billion budget.
- Balkhash Thermal Power Plant construction: 1,870 MW capacity, USD 2.8 billion.
- TuranAlem highway project: 700 km connecting Central Kazakhstan.
- Semey city residential development: 500,000 sqm new housing 2023.
- Pavlodar petrochemical complex construction: USD 4.5 billion investment.
Major Projects and Developments Interpretation
Kazakhstan appears to be furiously building its own universe from scratch, with a portfolio ranging from roads to refineries that suggests they’re tired of waiting for the future and have decided to construct it themselves.
Market Overview
- The Kazakhstan construction market size reached USD 12.4 billion in 2023, with a CAGR of 4.8% from 2019-2023 driven by infrastructure investments.
- Kazakhstan's construction industry contributed 5.7% to GDP in 2022, up from 5.2% in 2021 due to public sector projects.
- Total construction output in Kazakhstan grew by 6.2% year-on-year in Q4 2023, reaching KZT 1.8 trillion.
- Residential construction segment accounted for 42% of total construction value in Kazakhstan in 2023.
- Non-residential buildings construction in Kazakhstan valued at USD 4.1 billion in 2022.
- Infrastructure construction projects in Kazakhstan totaled USD 3.9 billion in investments for 2023.
- Kazakhstan construction market projected to grow at 5.1% CAGR to USD 17.5 billion by 2028.
- Building construction permits issued in Kazakhstan increased by 12% to 45,000 units in 2023.
- Kazakhstan's construction sector added USD 1.2 billion to fixed capital investments in 2022.
- Total floor space completed in Kazakhstan construction reached 15.6 million sqm in 2023.
- Civil engineering works in Kazakhstan construction grew 7.3% to KZT 2.1 trillion in 2023.
- Kazakhstan construction industry's share in industrial production was 11.4% in 2022.
- New construction contracts awarded in Kazakhstan worth USD 8.7 billion in H1 2023.
- Kazakhstan's urban construction market valued at USD 9.2 billion in 2023.
- Rural construction output in Kazakhstan increased 4.5% to KZT 450 billion in 2023.
- Kazakhstan construction market recovery post-COVID reached 105% of 2019 levels in 2023.
- Private sector construction investments in Kazakhstan totaled USD 6.8 billion in 2022.
- Public construction spending in Kazakhstan was KZT 3.2 trillion in the 2023 budget.
- Kazakhstan construction PMI averaged 52.3 points in 2023, indicating expansion.
- Total construction enterprises in Kazakhstan numbered 28,500 in 2023.
- Kazakhstan construction market size reached USD 12.4 billion in 2023, with a CAGR of 4.8% from 2019-2023 driven by infrastructure investments.
- Kazakhstan's construction industry contributed 5.7% to GDP in 2022, up from 5.2% in 2021 due to public sector projects.
- Total construction output in Kazakhstan grew by 6.2% year-on-year in Q4 2023, reaching KZT 1.8 trillion.
- Residential construction segment accounted for 42% of total construction value in Kazakhstan in 2023.
- Non-residential buildings construction in Kazakhstan valued at USD 4.1 billion in 2022.
- Infrastructure construction projects in Kazakhstan totaled USD 3.9 billion in investments for 2023.
Market Overview Interpretation
While Kazakhstan's construction sector is firmly laying its foundation with impressive growth, the numbers suggest it's still carefully mixing its cement, with ambitious public projects providing the sturdy frame but the private sector needing to bring more bricks to truly build a booming and balanced future.
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