Overheating. Dastan Bekeshev Proposes Introducing State Price Regulation for Real Estate

Deputy of the Jogorku Kenesh Dastan Bekeshev expressed his opinion on the need for state regulation of prices in the real estate market in Kyrgyzstan. He emphasized that this decision would help curb the rise in housing prices and the level of inflation.
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According to him, attempts to build affordable housing and seize residential properties do not contribute to lowering prices. The increase in housing costs also affects the rise in rental prices and accelerates inflationary processes.
Dastan Bekeshev highlighted the main factors contributing to this situation: the rising cost of construction materials, high demand, and a lack of alternative investments. "Real estate in our country is the most profitable investment. Those who have free funds prefer to invest them in construction," he added.
In addition, Bekeshev commented on the influence of foreign capital on the market. He believes that the role of non-residents in the demand for housing is exaggerated and proposed tightening the conditions for such investors.
In particular, he suggests increasing property taxes for foreigners, banning the purchase of secondary housing, and introducing additional fees when acquiring multiple real estate properties.
To stabilize the market and reduce prices, the deputy proposes several measures:

• the introduction of an "anti-flip" fee — a tax on quick resale of real estate to combat speculation;


• the transition of all transactions, especially in the primary market, to cashless payments through banks with minimal commissions;


• state regulation of prices for certain types of construction materials;


• taxation of vacant houses and apartments.

Dastan Bekeshev realizes that these proposals may cause dissatisfaction among property owners; however, he noted that the overheating of the market and high prices negatively affect all citizens of the country.