conomic growth requires physical space, and Kazakhstan is no exception. Territory is not a problem, but there is a deficit of modern facilities and basic infrastructure. From January to May 2005, the volume of construction works in the country reached $1.43 billion, and private contractors took the largest share of that sum (81 percent). The total number of buildings erected was 8,794.

Building boom: Plans are well underway to upgrade the Almaty-Astana motorway and build the Astana Airport, business hubs, a trade center, western-standard hotels and residential zones.

Oil and gas money has set off a property boom in Atyrau and Almaty and the demand curve for modern office space and residential buildings has spiked. Deep in oil country, marine export terminals are being built in Aktau to link Kazakhstan with outside markets. The oil fields of Tengiz and Karachaganak are the major purchasers of construction services in the west. In 2004, Kazakhstan imported $922 million worth of building materials from Russia and other countries, including 4.4 percent from the U.S. End users are particularly keen on high-quality flooring products, kitchen equipment and do it yourself (DIY) tools.

The shift of administrative capital from Almaty to Astana, in the central steppe, has translated into big business. The new capital generates 17.2 percent of the market for construction. President Nazarbayev completed the move in 2000. Initially, a special development program offered $130 million in incentives, but tax holidays for up to 5 years are still available to firms that invest in housing or public utilities. Developers like Kuat have taken on ever-more ambitious projects. Two new office wings are planned for the area behind the presidential palace, anchored by golden tubular structures that recall Central Asian minarets. The 560-mile highway link going from Astana to Almaty is also pending.

More than ten Turkish firms operate in the Kazakh capital since the 1990s and 153 joint ventures are registered with foreign contractors. But newcomers can still profit from the building spree. The European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB) routinely post tender announcements. At last September’s KazBuild exhibition, a construction trade show, there were stands from 58 countries. Contractors from Spain, Poland, Germany, Finland, Russia and Turkey were present.

“We are trying to bring in know-how and technology that is cutting edge. In Almaty we are currently working with a New York architect, for example, who is designing three towers downtown,” says Burak Oymen of Capital Partners, a property development firm. Mr. Oymen’s firm is also active in Moscow real estate, where it competes with U.S. and European design teams for office buildings and malls.

Almaty has its own challenges. The city is in an earthquake-prone zone that raises engineering costs, adds structural design complexity, and raises insurance premiums. The way around these problems is to increase the quality of reinforced concrete to higher specifications and apply tested engineering solutions. “In real estate, the product you develop must stand at least 50 years and in some cases hundreds of years,” says Mr. Oymen. Despite the challenges, Almaty will be an attractive market because of rapid economic growth. “Major international firms can’t afford not to be here,” says Mr. Oymen.