Qazaq Expert Club calculation: Kazakhstan developer installment plans carry effective rates up to 46.5%
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A Qazaq Expert Club analysis of installment plans from major Kazakh developers found that 0% installment offers carry markups of 10–15% and effective annual rates as high as 46.5%. The effective rate depends on down payment, term, and markup, not the apartment price, according to construction sector expert Dilyara Seitnurova. Commercial mortgage rates in Kazakhstan remain elevated even after base rate reductions.
Pricing Mechanics
Developers do not sell the same apartment at the same price for installment and full payment; the difference is the cost of deferred payment. With a 50% initial payment, one developer prices apartments 10% above the full-payment price, and the gap widens to 15% at a 20% initial payment. Another developer applies a 12% installment markup. The markup is charged on the entire apartment price, including the portion paid immediately, according to Dilyara Seitnurova of Qazaq Expert Club.
Effective Rate Calculation
Seitnurova's calculation for a 60-square-metre apartment priced at 45.3 million tenge shows that a 12-month installment with 50% down and a 10% markup raises the price to 49.83 million tenge and produces an effective annual rate of about 46.5%. The buyer pays 24.92 million tenge immediately and 2.08 million tenge monthly. Extending the same contract to 24 months lowers the effective rate to 22% with the same markup. A 30% down payment over 24 months with a 12% markup yields about 17.8% annual, while a 20% down payment over 36 months with a 15% markup yields about 12.6%.
Installment vs Mortgage
A 45.3 million tenge apartment bought on a 36-month installment with a 20% down payment and 15% markup costs about 52.09 million tenge, with monthly payments near 1.16 million tenge. For comparison, a 36.2 million tenge mortgage at 22% annual over 20 years carries a monthly payment of about 673,000 tenge but total payments of roughly 170 million tenge. A 10-year mortgage at the same rate has a monthly payment near 749,000 tenge. The installment route lowers total cost but demands higher monthly outlays.
What's Next
Seitnurova did not say whether developers will adjust installment markups as mortgage rates remain high. It remains unclear whether buyers will accept elevated monthly payments or delay purchases until commercial mortgage rates fall.
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Qazaq Expert Club calculation: Kazakhstan developer installment plans carry effective rates up to 46.5%
