Development of the Real Estate Market in Kazakhstan and the Specifics of Its Audit

Housing in a market economy is the most striking indicator of growth, reflecting the dynamics of development of various sectors of the economy and the confidence of the population in their future and the future of the country as a whole. Current issues that determine the interests of every citizen of the Republic of Kazakhstan are the trends in the development of the real estate market in large cities of the country. In this regard, the most urgent issue is the provision of housing for the population and, accordingly, its audit for a real assessment of the prevailing trends. For some sectors, problems of presenting fair values in financial statements are particularly difficult. The maintenance of real estate assets in firms is one example since assessing the market value of real estate assets is a difficult task. Concerns were expressed about how fair valuation should be ensured in the real estate sector. Real estate is a capital–intensive industry consisting of high values, not least in terms of initial investments. More importantly, the value of real estate is very volatile and uncertain. This is because properties are very, if not perfectly, heterogeneous and there is the corresponding high level of asymmetric information. As a result, transaction costs in the immovable property market are high, and transparency for investors may be low. The valuation of property assets is more complex than in many other industries. The complexity is due to the fact value of assets is based on expected future capitalized payments. Therefore, it can be expected that the need to report reliable valuations of property assets in communication with external stakeholders will be of particular importance in the sector.