Comment by Darkhan Lukpanov: Deposits vs real estate. What is more beneficial to keep savings in?

wednesday 2017-03-01 14:55

Out of all available methods of growing money, Kazakhstanis select deposits and real estate purchase.

Recent poll by the National Bank showed that 35% of Kazakhstanis consider deposits as the best way to keep and grow capital.

39% prefer real estate and 13.4% believe that there is no safer way than to keep money “under the mattress”.

Which of the options is the most attractive one?

Darkhan Lukpanov, Tsesna Capital analyst believes that if one to choose between the real estate and deposits, the latter option looks more beneficial.

“Current deposit rates (13-14% per annum) significantly exceed potential rate of return from the residential real estate rent (4-6% per annum", he noted and added that on top of that the short-term prices of the residential real estate are expected to fall.

In the analyst’s view, for majority of Kazakhstanis deposit remains not only the sole attractive, but also the sole accessible investment, as the income level and saving rate do not allow most of the Kazakhstanis to seriously review alternative options of investing.

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