According to the president, the State Mortgage Corporation (GIK) provides apartments to citizens who are on the waiting list for the housing program without a down payment. The term of the mortgage loan is 25 years, and interest rates range from 4% to 8% per annum.
“These rates are even lower than the inflation rate in the country. It is important to note that, for example, in Bishkek and the Chui region, private construction companies have been tasked with building housing 'turnkey' at a price of $700 per square meter. These properties are transferred to GIK without additional markups. We accept such houses at $700, and on top of that, we add another $250. This is because with a 25-year mortgage, these $250 will not even cover half of the inflation during that time. Nevertheless, we are taking this step to make life easier for people,” Japarov explained.
He also noted that before the start of the mortgage program, a meeting was held with representatives of the construction sector.
“I gathered entrepreneurs and suggested building housing at a price of $650 per square meter. They just laughed and replied, 'We will not build for less than $1000.' As a result, we turned to other companies and reached an agreement at the level of $700 in Bishkek and the Chui region, and $750 in the regions. The price difference is explained by the transportation of rebar and cement from Bishkek, which covers transportation costs,” the president added.
Sadyr Japarov emphasized that these measures will help streamline the process of providing housing and create a sustainable system without increasing the burden on the state budget.
“We should not forget about significant expenses such as the rising prices of building materials, workers' wages, as well as infrastructure development, including the construction of pumping stations and treatment facilities. All these factors were taken into account when forming the project's cost price. Therefore, I can confidently say that the established prices per square meter are fully justified from an economic point of view,” the president concluded.
