Page 90 - RusRPTJan22

9.1.4 Construction & Real estate sector news
According to Dom.RF, residential housing completions reached almost 82mn sqm for 11mo21, which fully matches the results in 2019 and 2020 results, and is just slightly below the record high from 2015 (85mn sqm).
The total amount of individual completions has almost reached 46mn sqm (+35% YoY) for 11mo21, exceeding that of the industrial housing segment (35.7mn sqm, +15% YoY). Dom.RF estimates that the share of individual housing mortgages could reach 20% of the total in the next five years vs. 2-4% at present, while in 2022 most market participants are expecting to double their origination for individual housing.
Completions were guided in the range of 85-90mn sqm for this year, according to Vitaly Mutko, the Head of Dom.RF, and 84-85mn sqm for 2022. Given the results for 11mo21, we note possible upside to these numbers, as December usually has the strongest figures of the year, at a 20% share of the total in the last five years.
In order to realise the strategic long-term target of 120mn sqm in annual completions, the sector would need to see a tangible acceleration across its segments, while facing short-term headwinds
90 RUSSIA Country Report January 2022 www.intellinews.com