Real Estate Market Evolution and Monetary Policy in Kazakhstan

This paper considers the link between macroeconomic policy and housing demand in an upper middle-income transition economy, Kazakhstan. The paper further explores price co-integration and contagion across cities. We find evidence that some parts of the housing market lead others but that, overall, regional housing markets are only weakly interlinked. The markets also tend to respond weakly to policy interventions – a matter of possible concern to the nation’s central bank.