6 September 2022
KEY CONCLUSIONS
Housing construction measures previously adopted in the Far East are
bringing positive results
“I believe that the
measures that were adopted in 2019 are bringing their first results. We will
need only to support them from now on,” Aleksandr Prygunkov, Member of the
Board of Directors, Samolet Group.
“In 2021, 25% more housing
was commissioned year-over-year. If it is high-rise housing, it is 13% in the
Far East in general,” Gadzhimagomed Guseynov, First Deputy Minister of the
Russian Federation for the Development of the Far East and the Arctic.
“We see a grand potential
in the Far East, which has increased its growth by over 200%. Which means there
is potential,” Nikita Stasishin, Deputy Minister of Construction, Housing and
Utilities of the Russian Federation.
Real estate price growth in the Far East will stabilize in the near
future
“The volume of
construction permits issued in the FEFD is growing at a good pace. In the Far
East, more than 93% of housing is already being built using project financing.
The number of unsold flats is about 65% of all that has been put on the market
– this means that the price will stabilize, definitely not rise above
inflation,” Nikita Stasishin, Deputy Minister of Construction, Housing and
Utilities of the Russian Federation.
“There is a steady demand
[for housing in the Far East, – Ed.] <...> The government needs to
balance and create conditions in time for the supply to grow along with the
demand with the same dynamics. Then the market break-even point reaches its
best value and the cost of housing falls,” Gadzhimagomed Guseynov, First Deputy
Minister of the Russian Federation for the Development of the Far East and the
Arctic.
PROBLEMS
Housing construction business has no single opinion on parking
“Either we run after the
level of motorization and increase the number of parking spaces and build car
parks, or we go the way of developing urban infrastructure, public transport
and thus transfer motorists to public transport, not building more roads, car
parks, which for the most part stand empty. Thus, residents of standard-class
facilities cannot afford to buy parking at the price offered for them, even
when it is below cost. So, we suggest looking at this problem from the point of
view of federal authorities of the Ministry for the Development of the Far East
and Arctic,” Alexey Almazov, Managing Partner for the Regions Segment, FSK
Group of Companies.
“A year ago, we made an
important change to the Urban Planning Code: we gave the governors and their
teams the authority to change the parking space ratio. In Tula Region it became
an anti-crisis measure: [this ratio, – Ed.] was reduced without affecting
comfortable living and creation of neighbourhoods. <...> But we cannot
shift everything [responsibility for transport accessibility in Russian cities,
– Ed.] to public transport [without creating parking spaces for cars, – Ed.],” Nikita
Stasishin, Deputy Minister of Construction, Housing and Utilities of the
Russian Federation.
SOLUTIONS
Extension of the Far Eastern mortgage until 2030 will help attract
developers to FEFD
“It is important now to
give a signal to developers so that we do not stop the pace [of construction, –
Ed.] If we say today that our concessional mortgage programme is only until
2024, it is a very bad signal. <...> I would like to ask the Ministry for
the Development of the Far East and Arctic to support the initiative to extend
preferential mortgages until at least 2030. It would be a good signal to our
developers that the government helps people to buy housing at an affordable
price in the first place,” Gadzhimagomed Guseynov, First Deputy Minister of the
Russian Federation for the Development of the Far East and the Arctic.
“We support the proposals
to extend subsidized mortgages. <...> When the mortgage subsidy programme
[is only designed, – Ed.] until 2024, the question arises: ‘What will happen
next? <...> Mortgage subsidy programmes until at least 2030 will
definitely support the development of housing construction,” Aleksandr
Prygunkov, Member of the Board of Directors, Samolet Group.
“All of our five mortgage
subsidy programmes are in place in the FEFD. There are preferential, family,
Far Eastern, rural and military mortgages, as well as mortgages for IT
specialists, but this is still a pilot project. In fact, only three programmes
are in demand here: Far Eastern, rural and military, so the budgets that the
Ministry of Finance initially earmarked to subsidize the preferential mortgage
and family mortgage programmes are available for redistribution in favour of
Far Eastern mortgages. <...> It is time to adjust the conditions of this
programme because we need to extend it, without extending it we will not be
able to make long-term development plans,” Anatoly Pechatnikov, Deputy
President – Chairman of the Management Board, VTB Bank.
The Stimulus and ‘Far Eastern Mortgage Concession’ needs to be connected
to social infrastructure construction in new neighbourhoods in FEFD
“In terms of social
infrastructure, we are ready to offer our Far East concession. <...> We
should provide a set of [measures, – Ed.], because when people come to a new
neighbourhood, they should immediately see a school and a kindergarten, a
hospital and a clinic,” Gadzhimagomed Guseynov, First Deputy Minister of the
Russian Federation for the Development of the Far East and the Arctic.
“Social, cultural and community
facilities <…> are a big part of the project the developer cannot cope
with in low-margin projects. This is why the whole idea of including them in
the Stimulus or the Far Eastern Quarter and the opportunity to subsidize them
is very important,” Alexey Almazov, Managing Partner for the Regions Segment,
FSK Group of Companies.
The government should support business in green-standard housing
construction
“We are ready to take
green standards [standards for the development, design, construction and
operation of facilities that provide for the preservation of the environment,
sustainable development and the creation of comfortable and safe living
conditions for people, – Ed.] upon ourselves, but the government should
stimulate and encourage it. I see it the following way: if you want to follow
the green or environmental standard, you will get either a subsidy or project
financing,” Vitaly Mutko, Chief Executive Officer, DOM.RF.
For more information, visit the
Roscongress Foundation’s Information and Analytical System roscongress.org.`