Mikhail Menn has told Mr Putin the truth about housing construction in Russia

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Mikhail Menn has told Mr Putin the truth about housing construction in Russia
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Last year, every third newly built apartment in Russia was acquired with the help of the state program of mortgage subsidies.

This is what the RF Minister of Construction, Housing and Utilities, Mikhail Menn, said at a meeting with the President Vladimir Putin and government members.

“As of the 1st of March, within the framework of the program, 270,590 mortgage loans have been granted to the tune of 484.7 bln roubles, which required an allocation of 4.13 bln roubles from the federal budget”, said the Minister.

According to him, this program, due to its efficiency, has been prolonged until the 1st of January, 2017. However, its terms should be adjusted – the interest rate for citizens remain the same, up to 12 percent, but the bank margin has been reduced from 3.5 to 2.5%.

“The federal budget for 2016 envisages an allocation of 16.5 bln roubles to cover liabilities on previously granted mortgage loans”, specified the head of the Construction Ministry of Russia.

Speaking on the current situation on the housing market, Mikhail Menn indicated a tendency of increasing economy class housing commissioning.

“In 2015 the commissioned economy-class housing amounted to 37.1 mln sq.m, or 44.3% of the overall volume of new housing supply. This is 20.8% more than it was in 2014 for the same period”, said the Minister.

For the first two month of 2016, the new housing supply amounted to 10.2 mln sq.m. This is 82.85% as compared with the same period of last year. However, commissioning in the current year exceeds the same period of 2014 by 16.5%.

“According to the information on the RF subjects, the projected volume of new housing in 2016 might be about 76 mln sq.m. At the same time, the number of finished apartments might increase to 38%, and in 2017, 26.8 %”, concluded Mr Menn.