Expert reveals fair price of land U.S. leases for $25 million in Almaty
The U.S. is going to lease a land parcel from Kazakhstan for 49 years to build its consulate in Almaty. The lease payment will be $25.3 million for the entire 49-year period. This is a kind of symbolic price, which is a common practice in international relations. A market lease price for that piece of land could reach $170 million.
The land parcel, spanning 70,500 square meters and intended for the construction of the consulate, is located at the intersection of Zhamakayev, Aldar Kose, Al Farabi and Seifullin streets. This is one of the most affluent areas in Almaty.
«If you want to buy land there, you have to be ready to pay about $50,000 per 100 square meters of land. Leasing commercial property in this area costs $3 to $4 per square meter per month, or $40 to $50 per year,» said Evgeniy Dolbilin, a partner at Scot Holland | CBRE in Central Asia and Kazakhstan.
Estimates based on the expert’s evaluation show that Kazakhstan would earn $3.5 million per year or $172.7 million over 49 years.
According to Dolbilin, U.S. embassies always choose commercial types of relations when it comes to private landowners. In such cases, prices always meet the market.
«However, when we are talking about governments, they are unlikely to do that on market conditions. This is a common international practice. Often, the land is donated, given on emphyteutic lease or transferred for management for 50 to 100 years at a nominal fee,» the expert underlined.
He also believes that the U.S. relies on various criteria when selecting a land parcel for its consulates and embassies.
«They consider whether the location is convenient for working and living, if there is access to necessary infrastructure, and whether it is seismically safe. They consult with all their internal departments — from geology and geophysics to security services. All specialists take part in this work and share their opinions,» the expert highlighted.
These preparation activities can take years of collective work. For example, Scot Holland | CBRE in Central Asia and Kazakhstan began cooperating with the U.S. government regarding the selection of a land parcel for its consulate in Almaty before the COVID-19 pandemic.
«Of course, we always had plans B and C, but that land parcel has always been the priority. After all internal discussions, negotiations with the Kazakhstani side began. In this regard, I think the Ministry of Foreign Affairs of Kazakhstan deserves the highest marks for its professionalism. That cooperation was very active and productive. No doubt, it contributes a lot to U.S.-Kazakhstan relations,» Dolbilin emphasized.
The idea of opening a general consulate of the U.S. in Almaty was proposed by President Kassym-Jomart Tokayev after the 74th session of the U.N. General Assembly. The U.S. will pay $25 million for the land lease in installments over 49 years. As of the time Kursiv.media visited the area allocated for the U.S. consulate, it was empty, with no construction activities.
