In Atyrau, homes built under a government housing program are falling apart. Residents are posting videos online showing cracks in the walls, sinking foundations, and collapsed facades. In some buildings, residents are trying to hold spreading walls together with metal beams.
This situation with state-funded housing is not unique to Atyrau — similar problems can be found across Kazakhstan. Why does social housing begin to deteriorate just a few years after construction?
Developers reportedly build in profit margins of up to 100%, while at the same time receiving cheap public funds through preferential mortgage programs.
Experts say that developers’ efforts to cut construction costs to the bare minimum, combined with 100% markups, are linked to the need to pay kickbacks to officials. According to some reports, such kickbacks can reach up to 40% of the total construction cost.
Video of AIRAN channel.
