Page 116 - RusRPTJul21

additional capacity in the summer season.
9.1.4 Construction & Real estate sector news
Subsidized mortgage lending made possible to bring over RUB2 trillion ($146.4 bln) into housing construction, and over 500,000 families took such loans, Russian President Vladimir Putin said on Friday at the plenary session of the St. Petersburg International Economic Forum.
"The [subsidized mortgage lending - TASS] program has become one of key crisis response measures to support households and the economy. Over 500,000 families formalized such loans at present. More than 2 trillion rubles were additionally attracted to housing construction," the head of state said.
Prospects of subsidized mortgage "was proactively discussed at floors" during the Forum, and it is the point of concern for many people in the country, Putin added.
Russia should raise housing construction by 4–5% per year, Deputy Prime Minister Marat Khusnullin said on Thursday at a meeting where the national housing goals were discussed. Russia will have to attract about 5 million labour migrants to the construction industry until 2024, including migrants from the other countries of the Eurasian Economic Union (EAEU), he said.
Real estate residential completions up 28.4% y/y in 5mo21 – primary market project launches added 50% y/y in 1H21 in Moscow.
The amount of residential property commissioned in Russia increased 28.4% y/y to 28.8mn sqm in 5mo21, based on Rosstat data. In addition, Metrium Agency noted that new launches on the primary market increased 50% y/y in Moscow in 1H21, to 33 projects. They are mostly in the mass segment (52%), followed by business class (39%) and the premium segment (9%).
These residential sector dynamics can be attributed to new project launches slowing down in the spring 2020 during the COVID-19 related restrictions (which resulted in a low base) and the subsidised mortgage programme being introduced. In 2020, March-May saw the introduction of the first lockdowns and construction in Moscow was frozen, which deferred the pipeline.
Recently, the Ministry of Construction has stated its target for residential completions of 85mn sqm for 2021 (up 3.4% y/y), which matches the record high of 2015. In order to achieve that, commissioning must reach 56.2mn sqm (-4% y/y) from June to December 2021. The sector’s strategic target is for 120mn sqm of completions by 2030, and the latest support measures were provided in areas such as developing multipurpose territories for large-scale
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