Against the backdrop of a stable real estate market development in Kazakhstan and active investor attraction, the country is becoming a promising location for launching MLM projects.

In this article, we have reviewed the real estate market in Kazakhstan and explained how MLM projects in the real estate sector operate. We have also analyzed whether it is worth starting an MLM project in the real estate market in Kazakhstan now.

Features of MLM companies in the real estate market

Companies using the network marketing (MLM) model sell their products or services through a network of independent distributors. This business model allows all partners of the network project to earn profits in the form of commissions from sales of products and sales of recruited distributors in accordance with the marketing plan. Project participants expand networks of consumers and partners, increasing the profitability of the business. MLM companies in the real estate sector operate on the same principle.

Real estate MLM companies are organizations that recruit independent agents to sell real estate or provide other services in this field.

Using the MLM model in the real estate market allows businesses to quickly acquire clients and partners with minimal promotion costs.

Due to its vast size, the real estate market offers several directions for building MLM:

Brokerage MLM projects. The main activity is selling houses, apartments, or other types of real estate. Agents not only sell real estate but also build their network by recruiting other agents and training them to sell. Commissions are earned for both personal sales and participants in the created structure.

MLM investment-type projects. The main activity is the sale of rental and investment trusts in real estate (REIT). Company agents also earn profits in the form of commissions from sold trusts and recruited participants.
Educational MLM projects. The main activity is the sale of educational programs for real estate agents and investors. In such companies, agents earn income from sold educational materials and sales of agents in the created team.

Therefore, in all real estate MLMs, agents earn on completed sales and expanding the project's partner networks. Commissions in such companies are usually set as a percentage of the property's sale price.

Often compensation marketing plans in real estate MLM projects are combined with investment plans. Then agents can invest their own funds in real estate to make a profit and also profit from attracted investments.

Real Estate Market Analysis in Kazakhstan

The real estate market in Kazakhstan makes a significant contribution to the country's economy, with a large portion of both local and foreign investments in Kazakhstan being in real estate.

The years 2021-2022 saw the highest activity in the real estate market due to government stimulus measures such as pension savings and preferential mortgages. Today, the real estate market has started to stabilize, and housing prices are rising at a slower pace.

In April 2023, prices for secondary housing increased by 3.8%, and for new housing by 7.8% compared to the previous year. Housing in new buildings became 9.3% more expensive, and the rent for housing increased by 27.6%. The average cost of purchasing housing in Kazakhstan is 489.2 thousand tenge (approximately $1097.6) per square meter, and the rental cost is 4.6 thousand tenge per sq. m. The highest real estate prices are in Almaty and Astana.

Under the influence of economic instability worldwide, raising retirement ages, and changes in lending practices, there was a decrease in home purchases at the beginning of 2023. However, the real estate market in Kazakhstan has started to revive, with the number of transactions increasing by 29.5% in April, reaching 31,455 units. One- and two-bedroom apartments in new buildings are in highest demand.

Demand for rental properties remains consistently high even after price increases. Many residents of Kazakhstan are now preferring to rent apartments in new buildings, with a 21.7% increase since the beginning of the year.

The overall increase in population, which now stands at around 19.6 million people, has had a positive impact on the real estate market. The influx of a large number of immigrants and businesses from Russia is creating new demand for property in Kazakhstan.

Among immigrants, housing of comfort class is in high demand, while relocated companies require quality office and warehouse spaces. Kazakhstan is facing a shortage of commercial real estate. This creates opportunities for the development of construction projects in this direction and an increase in rental prices for commercial spaces.

Is it worth starting MLM in the real estate market in Kazakhstan now

Real estate in Kazakhstan is becoming an important tool for economic growth and an attractive place for business development. The industry provides an opportunity for successful MLM business development due to the influence of many positive factors:

a growing real estate market with a constant demand for housing and commercial properties contributes to better client acquisition;
infrastructure development even beyond major cities, construction of new residential complexes and office buildings increase the demand for real estate agents' services;
reduction by Kazakh banks in mortgage interest rates gradually leads to increased home purchases among the population;
the planned introduction of new state mortgages will lead to a rapid increase in real estate prices and demand;
more and more investors are interested in state real estate as an opportunity for passive income, creating a favorable environment for investment MLM projects;
MLM agents do not require any licenses, unlike real estate agents, which helps attract partners to network marketing;

the use of digital technologies: virtual tours, electronic platforms, and online consultations facilitate the work of agents and the project as a whole.

The real estate market is already filled with many realtors and brokers, which can affect the activities of MLM projects in real estate in Kazakhstan and make market entry more complex. To build a recognizable and attractive brand, it is important to create an offer that will best meet the needs of potential clients and partners.

The real estate and MLM business market in Kazakhstan is regulated by legislation and requires compliance with all norms. To conduct business in real estate, state registration and obtaining a special license are required. Payment of income tax is also mandatory, and services must be provided exclusively through sales contracts, leases, or other agreements depending on the transaction being made.

Real estate in Kazakhstan is one of the most dynamically developing markets in the region. Due to population growth and business expansion in the country, the real estate market will continue to develop and become even more attractive to investors. Therefore, favorable conditions have been created for opening a network business in this sector. However, before starting your MLM business in the country, it is important to conduct a detailed analysis and consider all factors that may affect your operations.

Thorough planning, market analysis, legal environment assessment, as well as the proper development of an MLM project and marketing plan will help you achieve success. The FlawlessMLM team has years of experience in effectively launching MLM projects in this region. Visit the link /en/mlm_consulting.

The prospects of network business development in the real estate market of Kazakhstan