Page 119 - RusRPTDec21

boost construction next year.
The development scheme is to be similar to industrial housing, based on escrow accounts and project financing, with developers required to disclose information about each project and present the construction plans.
All infrastructure located within a cottage complex (such as water towers, engineering, communications, sports grounds and car parks), except for that which is on private plots, is deemed common property. According to Dom.RF, such complexes represent 16% of the area under construction. The Ministry of Construction’s target is 50mn sqm of individual housing completed by 2030.
Individual commissioning reached 40mn sqm as of 2020 and accounts for some 43% of total commissioning over the last ten years. Completions progressed at a 3% CAGR over 2010‐20.
The aforementioned regulatory initiatives are a positive development for residential real estate overall. This, coupled with higher demand with people working from home, as well as greater government support (such as extending family mortgages for individual housing), could become a new growth point both for the sector as a whole and for the operations of individual developers, which have already stated their interest in developing such projects. Examples include Samolet (its first project is to be in the Moscow region (200k sqm), equally split between individual and low-rise buildings) and PIK Group (176k sqm of individual housing in the Moscow region).
119 RUSSIA Country Report December 2021 www.intellinews.com