MATURE MARKET

Kazakhstan 2015 | CONSTRUCTION & REAL ESTATE | COLUMN

TBY talks to Doncho Penchev, Managing Partner, Office Solutions, on the real estate sector.

Doncho Penchev

The relocation of the capital from Almaty to Astana is one of the major forces driving the corporate real estate segment to the capital. What opportunities does Astana offer your company?

Almaty is a mature market. Many companies are not relocating to Astana, and respectively they are not closing their operations in Almaty, but opening branch offices and keeping their head office in the old capital. And this, in a way, is a smart move because it brings them closer to the government and to key institutions, as at the same time they retain their qualified workforce in Almaty. They do not have to spend a lot of money relocating staff; a radical move from one city to another involves many costs. Companies have a smarter approach and we help them to open representative offices or branches in Astana. We completed a few projects like that in Astana whereby companies opened their branch offices. From a construction perspective, Astana is now booming, while Almaty is not.