According to Forbes Kazakhstan, developers and investors in the country are showing growing interest in the street retail format, which is gradually evolving into a fully-fledged investment asset.

Market participants note that this trend reflects a new stage in the maturity of commercial real estate in the country’s largest cities, particularly in Almaty. Traditional shopping malls have reached a saturation phase and are no longer generating significant new consumer flows, instead redistributing existing foot traffic among established properties.

Amid intensifying competition, some retail facilities are undergoing redevelopment and changing their functional use. In recent years, several projects in Almaty have transformed shopping centres into business parks, gastronomic destinations, medical facilities, and educational hubs. Market experts view such reconceptualisation as a natural stage in the sector’s evolution.

At the same time, flagship malls are increasing the share of entertainment and food & beverage components in order to retain visitors. However, these formats are not always highly profitable, which encourages investors to seek alternative growth opportunities.

In this context, development activity is increasingly shifting towards street retail. New residential districts are actively incorporating convenience stores, coffee shops, parcel pick-up points, and educational centres. Street retail is becoming part of the daily urban infrastructure, while pedestrian-oriented commercial spaces are emerging even in locations previously used for parking.

Experts link the growing popularity of this format to the expansion of e-commerce and the changing role of offline retail. As online shopping becomes the norm, physical stores are transforming into service-oriented and communication spaces located as close as possible to the consumer.

As a result, street retail is moving beyond its traditional niche within small business and is increasingly viewed as a stable investment instrument with predictable demand. This trend is particularly evident in Almaty, the country’s largest retail market.