5 September 2024

The integrated development of territories: new horizons of housing construction

The pace of housing construction in Russia is growing every year, but land plots for construction in settlements are still limited. Under these conditions, the mechanism of integrated development of territories is in great demand. The authorities are actively taking an inventory of land, including in the Far East, to make more efficient use of it. They are offering developers new tools to participate in the project. This was the subject of the session ‘The Integrated Development of Territories: New Horizons of Housing Construction’, which took place as part of the Eastern Economic Forum.

KEY CONCLUSIONS

Focusing on the integrated development of the Far East territories

“Since last year, master planning has been added to all 11 regions of the Far Eastern District. You know, this is receiving increased attention,” Vitaly Mutko, Chief Executive Officer, DOM.RF.

“The Far East is a separate group of regions. The support measures that are currently provided by the Ministry for the Development of the Far East and Arctic, DOM.RF, and the Ministry of Construction in the Far East, have shown and will continue to show qualitative improvement in terms of housing commissioning,” Nikita Stasishin, Deputy Minister of Construction, Housing and Utilities of the Russian Federation.

Inventory of land plots helps to use them more efficiently

“We are conducting a major inventory across the country to get rid of this archaism when you come to a beautiful city and suddenly see a building in a tired, deplorable condition, and it is immediately clear that this building is state-owned. We have set a task at the federal level to ensure that next year these buildings will no longer exist. Therefore, we urge our colleagues in the regions and municipalities to follow our example,” Aleksey Pavlov, Deputy Head, Federal Agency for State Property Management.

“There is a lot of land in city centres that becomes a rust belt. It is located in the outskirts. It can also be found in the city centre. These are former industrial territories. They are not being developed in any way. The owners of these territories have long gone abroad and are in no hurry to do anything with them. One of the ideas is... to take these land plots, which exist throughout the Russian Federation, under our wing, and to make an inventory of them together with the municipalities,” Gaidukov Alexander, Head, “Strana Development” Group of Companies.

PROBLEMS

Inefficient use of land by landowners with limited areas for development

“If you look at our resources. We are the largest country in the world. We have an area of 17 million square kilometres. And if you look at it more deeply, only 1.3% is settlements. <...> What did we see? That there are lands that are not demarcated, and that the lands that are kept by rightsholders are sometimes inefficiently used,” Vitaly Mutko, Chief Executive Officer, DOM.RF.

“The main task in this part is to bring inefficiently used objects into economic turnover. Recently, we have been carrying out an inventory across the country and have already identified about 12,000 such objects,” Aleksey Pavlov, Deputy Head, Federal Agency for State Property Management.

SOLUTIONS

Establishment of testing grounds in ITD projects

A very important topic for the regional and municipal authorities is to create testing grounds within the ITD, where it is possible to obtain a construction permit as quickly as possible and to start attracting funds from citizens, to start construction,” Nikita Stasishin, Deputy Minister of Construction, Housing and Utilities of the Russian Federation.

“The key rate is already, to put it mildly, prohibitive. Apparently, it is expected to rise a little more. Still, we should emphasize that the budget money that is currently available should be allocated directly to the testing grounds,” Alexey Almazov, Managing Partner for the Regions Segment, FSK Group of Companies.

Taking into account the needs of the people in the design of territorial development projects

“We always listen to the citizens. Undoubtedly, economic aspects are important, but without sociology, without citizens’ requests for infrastructure, we will not move forward,” Veronika Minina, Vice-Rector, National Research University Higher School of Economics.

“As part of the concept, we studied the methodological document, the best practices that were developed with the support of DOM.RF, and the standard for integrated territory development. We took into account the local context, having worked it out with the government of Khabarovsky Krai and Khabarovsk city administration. In other words, we have two other sides that are significant when taking into account the interests of the people,” Elena Stepanova, Director of Strategic Development, PIK-Specialized Homebuilder.

Using the ‘auction-for-share’ mechanism more actively to attract investors

“If you deal with a land plot under the ITD, it is a lot of work with the region. It is coordination of all the urban planning possibilities of the land plot. This is coordination in the form of development, these are approaches to infrastructure provision. We have taken such decisions as ‘auction-for-share’,” Vitaly Mutko, Chief Executive Officer, DOM.RF.

“Auctions-for-share... In my opinion, this is an absolutely brilliant thing. First of all, it lowers the entry threshold, and secondly, splits the risks between the two parties,” Anton Glushkov, President, NOSTROI National Association of Builders.

 

* This is a translation of material that was originally generated in Russian using artificial intelligence.

For more information, visit the Roscongress Information and Analytical System roscongress.org.