Construction and renovation: how the market works, how they make money, and where they make costly mistakes

The construction and renovation market in Kazakhstan has stopped being a chaotic mix of suppliers and listings. Over the past few years, it has evolved into a structured industry with clear segments, stable demand, and a pronounced shift to online channels. Growth in private construction, active renovation of residential real estate, and the increasing role of local manufacturers directly influence demand structure and buyer behavior.

According to the Bureau of National Statistics, in 2023 the volume of construction work in Kazakhstan reached approximately KZT 7.6 trillion, representing year-on-year growth of more than 15%. Importantly, over 82% of all work is carried out by private companies rather than within government procurement. This indicates that the market is driven by private developers, contractors, and end consumers.

In 2025, this momentum has continued. In just the first months of the year, the volume of construction work exceeded KZT 1.4 trillion, demonstrating double-digit growth rates. This leads to one clear conclusion: demand for products and solutions in the “Construction and Renovation” category is stable and long-term.

Construction Materials: The Foundation of the Market in Numbers

Construction materials form the foundation of the entire industry. Without them, neither new construction nor major renovation is possible. This segment accumulates the largest volume of transactions and search queries.

According to industry analysts, the construction materials market in Kazakhstan reached approximately USD 4 billion in 2024. More than 68% of this market is accounted for by domestic production, and this share continues to grow. Imports are gradually declining, giving way to local manufacturers that benefit from logistics advantages and adaptation to local conditions.

Particular growth has been recorded in key product categories:

• production of dry construction mixes has increased by approximately 2.5 times in recent years, exceeding 1.6 million tons per year;
• gypsum production has more than doubled, reaching around 160 thousand tons.

These figures show that the market is not merely reselling materials, but actively expanding its own manufacturing base. For buyers, this means wider choice, price competition, and supply stability.

Finishing Materials: The Segment with the Highest Spending

Finishing materials occupy a special place in the market structure. This is where the final result of renovation is formed and where buyers make the most emotional and expensive decisions.

Growth in construction automatically drives demand for finishing works. According to experts, up to 35–40% of the renovation budget in residential real estate is spent on finishing materials. This segment is sensitive to trends, design, and income levels, yet remains consistently in demand.

The finishing materials market is highly fragmented. Buyers are looking for:

• different price segments;
• alternative suppliers;
• the ability to compare solutions rather than brands.

For this reason, online platforms with a large number of listings and transparent navigation are becoming the primary entry point for buyers, especially in large cities and actively developing regions.

Engineering Systems: The Most Complex and Expensive Segment

Engineering systems represent the most complex part of the “Construction and Renovation” category. A key role in this segment is played by Heating and Ventilation Systems and Water Supply and Gas Supply, which require precise selection, professional calculation, and high-quality components.

This segment is characterized by:

• a high average transaction value;
• a long decision-making cycle;
• low tolerance for mistakes.

According to market participants, engineering systems can account for up to 25–30% of the budget for building a private house. Errors in this area lead not only to cost overruns but to long-term operational problems.

As a result, buyers increasingly seek not a specific product, but:

• integrated solutions;
• direct contact with suppliers;
• the ability to compare options for a specific task.

Online catalogs and classified platforms are beginning to serve as primary analytical filters rather than simple showcases.

Electrical Products: A Supporting but Essential Segment

Electrical products are rarely perceived as a standalone market, yet they are present in virtually every construction and renovation project. Cables, circuit breakers, panels, lighting fixtures, and sockets are almost always purchased.

Electrical products strengthen the core cluster through:

• stable demand;
• high frequency of repeat purchases;
• a large number of low-frequency search queries.

For buyers, speed of selection, availability, and compliance with standards are critical. This segment is rarely the main reason for a visit, but often becomes a logical continuation of an already made decision to build or renovate.

Tools: A Practical Segment with Fast Turnover

Tools cover the practical side of the market. DIY users, repair crews, and small contractors generate steady demand for power tools, hand tools, and consumables.

According to sellers, up to 60% of tool purchases are made in connection with a specific task rather than for future use. This makes the segment particularly sensitive to search convenience and offer availability.

Tools are rarely perceived as an independent market by users, but they play an important role in completing the decision-making chain.

How Buyer Behavior Has Changed

The modern construction and renovation market is defined by three key shifts:

• buyers research the market online in advance;
• compare offers from different sellers;
• seek direct contact without intermediaries.

Growth in construction volumes, development of local manufacturing, and digitalization of trade are driving demand for universal platforms where users can navigate the market as a whole rather than search for a single product.

Conclusion

The “Construction and Renovation” category today represents a large-scale ecosystem supported by real economic indicators. Growth in construction volumes, a multi-billion-dollar materials market, expansion of local production, and stable demand for engineering solutions create a solid foundation for long-term development.

Construction materials form the market’s foundation, finishing materials define its final value, engineering systems ensure functionality, while electrical products and tools address practical needs. This is the logic by which the market will continue to evolve.