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Quality warehouse space per capita ( 2023-24 )
Class A warehouse rental prices per sq . m . and per year ( 2023-24 )
Source : IBC Global , NF Group cited by Kursiv
in Dubai or Manchester , notes Savills , and 40-60 % 5 higher than in the Moscow region , our data indicate . Kyrgyzstan ranks similarly to Munich or Bristol in terms of storage costs ($ 114 per sq . m .), far outpacing major major EU port locations such as Rotterdam and Antwerp , as well as Eastern European countries and the Caucasus states .
While the high rental rates and limited options may deter some tenants , investors are enjoying extremely favourable conditions . In Central Asia , the payback period for warehouse complexes is only half as long as in Europe . With an average annual yield of 17-20 %, investments are expected to be recouped within just five to six years 6 .
INVESTMENT BOOM
Kazakhstan ' s President Kassym-Jomart Tokayev has identified the transport and logistics industry as a key driver of the country ' s economic development . He has tasked his country with solidifying its role as a transit hub in Eurasia , with the long-term goal of becoming a fully-fledged transport and logistics power . The share of the transport and logistics sector in the country ' s GDP is expected to increase by one and a half times , reaching some 9 % within three years .
Priority infrastructure projects in Kazakhstan include constructing railway lines in the eastern , southeastern and
With an average annual yield of 17-20 %, investments are expected to be recouped within just five to six years southern regions near the borders with China , Kyrgyzstan and Uzbekistan . Simultaneously , plans are underway to develop a network of bonded warehouses in the country ' s major cities — Astana , Almaty and Shymkent . Additional initiatives involve establishing goods-processing hubs at border areas shared with other countries of Central Asia , creating a container facility known as the ‘ Caspian Hub ’ and building container terminals in western Kazakhstan .
From January to June 2024 , the transport and warehousing sector received investments totaling 1.07 trillion tenge ($ 2.1 billion ), up 33 % from the same period of the previous year . Over half of this funding has been allocated to freight storage and auxiliary transportation services .
In the first three months of 2024 , Kazakhstan ' s economy saw a net inflow of $ 1.94 billion in FDI . Of this total , 13.2 % was directed towards the transport and warehousing sector . Specifically , the warehousing sector received $ 70.2 million , nearly equivalent to the combined total of the previous two years .
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WEJ | September 2024