Kazakhstan
Real Estate & Construction in Kazakhstan
Bond Stone has advised international investors, Chinese EPC contractors, and infrastructure developers on real estate and construction in Kazakhstan since 2007, across the full transaction lifecycle. Ranked by Legal 500 EMEA and IFLR1000, our practice covers commercial real estate in Almaty and Astana, industrial and logistics development in Kazakhstan's Special Economic Zones, AIFC-anchored investment structuring, and construction mandates across the BRI corridor.
Kazakhstan's real estate and construction sector has attracted significant foreign capital — driven by commercial office and residential development in Almaty and Astana, Chinese EPC contractors entering the market, UAE and Gulf investors acquiring hospitality and commercial portfolios, and infrastructure projects under Kazakhstan's national development programmes. The legal framework is a civil law system with sector-specific regulation governing land use rights, construction licensing, building standards compliance, mandatory expert examination, and tightly regulated shared residential construction.
Foreign companies may own commercial buildings in Kazakhstan, directly or through a Kazakhstani subsidiary (LLP), and may own the land for building or under their buildings. Agricultural land is closed to them, whether by ownership or lease, and to Kazakhstani entities with foreign participation; frontier-zone land may not be owned either. Investment structures typically combine a Kazakhstani LLP as the operating and title-holding entity with a foreign or AIFC holding company above for profit repatriation, exit structuring, and investor protection. Foreign investors in Kazakhstani real estate may also benefit from bilateral investment treaty (BIT) protection — see our Investment in Kazakhstan practice for BIT and PPP/concession structuring.
Sectors: Commercial office (Almaty & Astana) · Residential development & shared construction · Industrial & warehouse (Special Economic Zones) · Hospitality & mixed-use · AIFC commercial & fintech campus · BRI corridor logistics & infrastructure
Primary authority: Land Code No. 442-II (20 June 2003); Civil Code of the Republic of Kazakhstan; Construction Code No. 253-VIII (9 January 2026); Law on Equity Participation in Housing Construction No. 486-V (7 April 2016). Source: adilet.zan.kz
Real Estate & Construction Legal Services in Kazakhstan
Land Acquisition & Land Use Rights
Advising on the acquisition of land use rights for commercial and industrial development under Kazakhstan's Land Code No. 442-II — state land allocation procedure through the local executive authority, private market acquisition, title verification, encumbrance search, and land plot subdivision. Temporary paid land use (lease) under the Land Code is short-term (up to 5 years) or long-term (5 to 49 years). Foreign companies may own plots for development or carrying buildings, and may hold leases directly or through a Kazakhstani subsidiary, but may not hold agricultural land. Bond Stone advises on optimal SPV structuring for international real estate investors — including Kazakhstani LLP as the title and use-right holder with an AIFC or offshore holding company above for exit, repatriation, and investor protection.
Construction Licensing & Permits
Obtaining construction licences (Category I, II, and III) for foreign and domestic contractors operating in Kazakhstan — eligibility assessment, qualification documentation, personnel and equipment requirements, and application filing with the local executive body responsible for state architectural and construction control. Foreign companies may hold a licence directly or through a Kazakhstani subsidiary, though a branch cannot be the licensee, and experience under a foreign licence can count towards higher-category licences. Bond Stone also advises on start-of-works notifications and state architectural supervision compliance.
EPC & Construction Contracts
Drafting and reviewing EPC contracts for energy, industrial, and commercial construction projects in Kazakhstan — adaptation of FIDIC Silver and Yellow Book forms for local requirements, local content obligations where they apply, payment mechanisms and milestone certification, performance bond structuring, variation claim procedures and engineer determinations, Kazakhstani force majeure provisions, penalty clauses under the Civil Code, expert examination compliance, and dispute resolution clauses (Kazakhstani courts, AIFC Court, or international arbitration). Bond Stone advises Chinese EPC contractors and project owners on construction contracts under Kazakhstan law for Central Asian construction projects.
Shared Construction
Advising developers and investors on Kazakhstan's shared residential construction framework — the three permitted ways of raising buyers' money (after the frame is built; under a guarantee from the Unified Housing Construction Operator, Kazakhstan Housing Company; through a second-tier bank's project), mandatory disclosures and regulatory filings, construction progress milestones, and completion obligations. Bond Stone advises international investors on structuring shared construction projects to comply with Kazakhstan's regulatory requirements and on investor protection provisions where the developer is a Kazakhstani counterpart.
Commercial Real Estate M&A
Legal due diligence and transaction support for acquisitions of Kazakhstani commercial real estate portfolios — title chain review, encumbrance and mortgage search, lease assignment analysis, regulatory compliance, construction approvals and acceptance act review, and SPA negotiation. Bond Stone advises on structuring commercial real estate acquisitions through asset deals or share deals, the tax implications of each structure under Kazakhstani law, and AIFC holding company structuring for international real estate investors. For larger portfolio acquisitions see also our M&A practice.
Property Registration & Title
Coordinating property registration with the State Corporation "Government for Citizens" — title registration for newly constructed facilities after commissioning, transfer registration for real estate acquisitions, mortgage registration and discharge, easement registration, and title rectification where encumbrances or disputes exist. Bond Stone manages the full registration process and advises on title registration following facility commissioning.
Commercial Lease Structuring & Review
Drafting and reviewing commercial lease agreements for office, retail, industrial, and warehouse premises in Kazakhstan — lease term and renewal options, rent indexation mechanisms, operating cost and service charge allocation, fit-out and reinstatement obligations, early termination rights, and landlord/tenant default provisions under the Kazakhstani Civil Code. Bond Stone advises international tenants and landlords on lease structures for Almaty and Astana commercial premises, and on the registration of leases of one year or more with the State Corporation "Government for Citizens" as required under Kazakhstani law.
Detailed Guides
- Construction Licensing in Kazakhstan
- Architectural Design Licensing in Kazakhstan
- EPC Contracts and FIDIC in Kazakhstan
- Land Use Rights in Kazakhstan
- Foreign Land Ownership in Kazakhstan
- Property Registration in Kazakhstan
- Commercial Lease Agreements in Kazakhstan
- Shared Construction in Kazakhstan
Kazakhstan Real Estate — Key Legal Framework
Foreign Land Ownership & Use Rights — Under Land Code No. 442-II, Arts. 23 and 24, foreigners and foreign legal entities may own land for development or carrying buildings, but not agricultural, afforestation or frontier-zone land. Agricultural land may not be held by them, or by Kazakhstani entities with foreign participation, under any right, including a lease. A foreign individual without a permanent residence permit may not own housing, though non-residential property is open. Foreign investors may also hold leases of up to 49 years, directly or through a Kazakhstani subsidiary (LLP). An AIFC holding company above the LLP is a common structure for exit and profit repatriation.
Construction Licensing — A licence of the right category is required for construction work. Category I covers all responsibility levels and is needed to act as general contractor on first-level facilities; Categories II and III reach first-level work only under subcontract (Construction Code, Art. 55). Foreign companies may hold a licence in their own name or through a Kazakhstani LLP; a branch cannot itself hold it. An equivalent foreign licence can count towards the experience requirement (Order No. 197 of 22 April 2026).
Expert Examination — Comprehensive non-departmental expert examination, commonly called state expert examination, is required before construction for all projects except the simple third-level facilities listed in Art. 98(4) of the Construction Code. Floor area and cost are not the test. Starting without a required positive conclusion exposes the project to suspension and liability.
Shared Construction — Under the Law on Equity Participation in Housing Construction No. 486-V, buyers' money may be raised in only three ways: after the building frame is complete and confirmed by an engineering company; under a guarantee from the Unified Housing Construction Operator (Kazakhstan Housing Company); or through a second-tier bank's project. A transaction raising money in breach of the law is invalid, and those responsible face liability.
Local Content Compliance — Construction and EPC contracts for subsoil users and on state-funded projects carry local content requirements under the Subsoil Code No. 125-VI and sector rules. Purely private projects are not caught unless the contract says so. Non-compliance can trigger contractual penalties.
Title Registration — Ownership of a new building arises only on state registration (Civil Code, Art. 236), and the approved acceptance act is the basis for registration (Construction Code, Arts. 120(14), 132(11)). We found no fixed period for applying in Law No. 310-III or the Construction Code. Standard registration at the State Corporation "Government for Citizens" takes three working days; expedited registration takes one working day at a higher price. Until title is registered the owner cannot sell or mortgage the building as real estate, because the rules on the materials still apply (Civil Code, Art. 236(4)). Construction and title disputes arising post-completion are handled by Bond Stone's dispute resolution team.
Experience
Bond Stone has advised on real estate transactions and construction mandates in Kazakhstan since 2007 — for Chinese EPC contractors, Australian mining investors, UAE real estate investors, and European commercial developers. A selection of representative matters is set out below. Client names are withheld where confidentiality has been requested.
M&A · ALMATY · 2024
Commercial Real Estate Portfolio Acquisition — Almaty
Advised an international investor on the acquisition of a multi-asset commercial real estate portfolio in Almaty — full title chain due diligence, encumbrance and mortgage search, lease assignment analysis, building permit and acceptance act review, SPA negotiation, and post-closing registration coordination with the State Corporation.
EPC · INDUSTRIAL · KAZAKHSTAN
Chinese EPC Contractor — Market Entry & FIDIC Contract
Advised a Chinese state-owned construction company on Kazakhstan market entry — branch establishment, Category II construction licence obtained using the parent company's international project portfolio, Ministry of Construction liaison, and FIDIC Yellow Book EPC contract review for an industrial facility construction mandate.
FOREIGN INVESTMENT · UAE · ALMATY
UAE Investor — Real Estate SPV Structuring
Advised a UAE-based investor on structuring commercial real estate investment in Almaty — LLP formation as the title-holding entity, long-term land use right acquisition, BIT protection mapping under the UAE-Kazakhstan BIT, AIFC holding company incorporated above the LLP for profit repatriation and exit, and ongoing compliance advisory.
M&A · COMMERCIAL · ALMATY
Automotive Complex — Share Sale Mandate
Sale advisory for an Almaty automotive service complex — transaction structured as a share sale to avoid land use right transfer complications under Kazakhstan's Land Code; investor-facing information memorandum prepared, valuation anchored on permitting scarcity thesis, buyer outreach coordinated, and SPA preparation commenced.
Why Bond Stone for Real Estate & Construction in Kazakhstan
Ranked Legal 500 EMEA and IFLR1000 — recognised across corporate, M&A, and real estate work in Kazakhstan; Almaty and Astana offices with on-the-ground presence since 2007
Kazakhstan-focused practice — real estate and construction work for investors and contractors, handled by lawyers based in Kazakhstan
Chinese EPC contractors — we support Chinese state-owned and private construction companies entering the Kazakhstan market through branch establishment, construction licensing, FIDIC contract adaptation, and local content compliance
AIFC Legal Adviser status — enables dual-layer structuring in a single mandate: Kazakhstani LLP as the title and land use right holder, AIFC holding company above for exit, BIT protection, and profit repatriation without a secondary international adviser
Full transaction cycle on one mandate — land use right acquisition, construction licence, FIDIC contract, expert examination, facility acceptance, title registration, and commercial real estate M&A handled by the same team
Related Industry Practice
Bond Stone's Real Estate & Construction practice supports sector-specific advisory for the property, development, and construction industries in Kazakhstan and Central Asia.
Real Estate & Construction Industry → Mining & Metals Industry → Energy & Natural Resources →
Frequently Asked Questions — Real Estate & Construction in Kazakhstan
Can a foreign company own real estate in Kazakhstan?
Foreign companies may own commercial real estate (buildings, offices, retail, industrial facilities) in Kazakhstan, directly or through a Kazakhstani subsidiary (LLP). Under Land Code No. 442-II they may also own the land for building or under their buildings, but not agricultural, afforestation or frontier-zone land, and they may not hold agricultural land even on a lease. In practice, title is often held by a Kazakhstani subsidiary, with the foreign investor holding shares in that subsidiary. A subsidiary with foreign participation is itself barred from agricultural land.
What construction licence category is required in Kazakhstan?
Kazakhstan has three categories, set by the responsibility level of the facility. Category III covers third-level facilities, Category II second and third-level facilities, and Category I all levels; lower categories reach higher levels only under subcontract. Categories I and II require licensed experience and completed projects, so a newly registered entity cannot obtain them at once. A foreign company may hold the licence in its own name or through a Kazakhstani LLP, and an equivalent foreign licence counts towards experience. A branch cannot itself hold the licence.
How are EPC contracts structured for construction projects in Kazakhstan?
EPC contracts in Kazakhstan are typically structured on FIDIC Yellow or Silver Book terms, adapted for local regulatory requirements. Key adaptation points include: local content obligations; compliance with Kazakhstani building codes and standards; mandatory expert examination of project documentation; force majeure provisions appropriate for Central Asian conditions; penalty clauses under Kazakhstani Civil Code rules; and dispute resolution — Kazakhstani courts, AIFC Court, or international arbitration.
What is the shared construction framework in Kazakhstan?
Shared construction is strictly regulated under the Law on Equity Participation in Housing Construction No. 486-V of 7 April 2016. Developers may raise buyers' money in only three ways: after the building frame is complete and confirmed by an engineering company; under a guarantee from the Unified Housing Construction Operator (Kazakhstan Housing Company); or through a second-tier bank's project. A transaction raising money in breach of the law is invalid, and those responsible face liability.
How long does property registration take after construction completion in Kazakhstan?
After construction completion and facility commissioning, the owner applies for title registration with the State Corporation "Government for Citizens." We found no fixed period for applying in Law No. 310-III or the Construction Code, but ownership of a new building arises only on registration (Civil Code, Art. 236). Standard registration takes three working days; expedited registration takes one working day at a higher price. Registration rests on the acceptance act, which the customer approves and which is signed by the customer, the contractor and the persons carrying out project management, technical supervision and author's supervision (Construction Code, Arts. 132(6), (7), (11)). Until title is registered the owner cannot sell or mortgage the building as real estate.
Discuss your Kazakhstan real estate or construction matter
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M&A in Kazakhstan → Dispute Resolution → AIFC Practice → Investment in Kazakhstan →
Primary authority: adilet.zan.kz — Land Code No. 442-II, Construction Code No. 253-VIII, Law on Equity Participation in Housing Construction No. 486-V