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.