currently under construction in Russia is 9546 houses, and 99.4 million square meters of housing (including 34.2 million “squares” are constructed using project financing), reported the press service of the Ministry of construction. In April, the Department has developed measures to support the industry, which are aimed at maintaining demand, financing and construction of planned new housing in 2020-2021 years. “We expect that the adopted measures will help to ensure that the resulting housing will remain at least at the level of last year, and will also help to increase the pace of construction, reduced through the introduction of quarantine restrictions on construction sites”, – the Ministry informs.
Enter apartment houses for 5 months was down only 2.3% compared to the 2019 year – on-year to 10.7 million square meters, is noted in the HOUSE.Of the Russian Federation. This is due, in particular, with the inability to register as MFC and government bodies to work with restrictions. “Given the gradual removal of restrictive measures and return to normal operation, expected recovery rates of housing delivery in the next two to three months. When you save the current dynamics of the input multi-family housing by the end of 2020 will be able to preserve last year,” according to the company. The demand for housing has now returned to growth, the volume of mortgage lending in may was 8% higher than in may last year. In late spring – early summer, according to the Fund of protection of the rights of citizens – participants of shared construction, which tracks construction of houses under the old rules, the average was 6.5 thousand contracts equity per week, which corresponds to the beginning of March.
“Most developers still stick to plans for the introduction of volumes of residential premises this year, slightly adjusting the timing of commissioning of some facilities”, – said Director of corporate ratings NKR Alexander Diakov. Significant difficulties are faced mostly by small and medium developers in regions with a weak solvent demand. If there will be a second wave of coronavirus and economic shocks related to the fall of the ruble, as well as if they fully implemented the proposed government measures to support the industry, the decline in construction volumes for the year will not exceed 15%, according to the Diakov. The recovery in the volume of construction will depend on the recovery of incomes. Under favorable conditions, the market will recover to the 2023-2024 year, with a growth rate of 3-5% per year, he said.
the Decline of construction is largely associated with the reform of the construction industry, which occurred in July 2019, says General Director of company MACON Ilya Volodko. After the transition to project Finance volume�� housing construction fell by 18%, the market has left 15% of the players, and the average price of new buildings grew by almost 20% (14% of the price gained in the preparatory period, until July of last year, and then rose another 5%). “However, the construction industry is showing resilience, adapting to the new rules is in normal mode, says Volodko. – The volume of project financing over the past year has increased almost 4.5 times, and the number of open escrow accounts, almost 9 times”. According to the results of the current and next years we can expect further decline in construction activity, he said: the market will continue to go the players are not able to operate under the new rules, a pandemic will inevitably lead to falling incomes and reduced demand. “The fall in construction volumes in the next 1.5 years could reach 15-20%. The achievement of the planned national projects in the amount of 120 million square metres of housing per year until 2024 is unattainable” – says the analyst.
the Greatest concern, as has been noted, the Ministry of construction, causes a decrease of the market entry of new objects. However, the achievement of the objectives of the national project for the construction of 120 million square meters of housing per year by 2024, it is still possible, according to the Ministry, subject to the adoption of all proposed measures to support the industry.
the Draft program of action for the development of housing construction and mortgage lending, which is included in the national plan, provides comprehensive support to the construction to the end of 2021, according to the portal Uniform resource developers. The project is proposed, in particular, the extension of the program of mortgage with state support until the end of 2021 with the rate of 5%, the spread of programs of subsidizing mortgages on apartments. To buyers it was easier to save up for a down payment, can be introduced housing savings mechanism, which provides for subsidizing of interest rates on savings for a down payment and compensation for changes in the cost of housing during the period of accumulation.
it is Expected to introduce subsidized loans for builders, project ROI less than 15%. Means of program “Stimulus” will be allocated to the engineering and transport infrastructure. And medical and educational institutions, the construction of which is now spent for this program will be to erect the framework of the national projects “Health” and “Education”.
For 40% of Russian families to purchase housing in the property is not available because of low income, the program notes. In this regard, it is proposed to provide them with housing on a fundamentally different shape – non-commercial rent without the right of free privatization. Residents of these apartments are subsidizing the lease rate depending on income level. Families that do net the needs in buying housing in the property (these can be young professionals or those who are still undecided with the desired place of residence) can make use of commercial rental Fund. They provide tax deductions for the rent.
there is the need to regularize the status of the property, to recognize their special form of housing and to explore the possibility of creation on their basis projects of rental housing.
Without the adoption of this programme is 120 million square meters of housing in 2024, given the current situation, can be built only 91,1 million If proposed in the programme of action will be taken, the objective of 120 million is achievable, although in the years 2020-2023 indicators are still slightly lower than planned in the national project described in the project document.
