Mikhail Menn: This year still more apartments will be built in Russia

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Mikhail Menn: This year still more apartments will be built in Russia
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Last year the volume of new housing supply in Russia reached 85,3 m m2, whereas in 2016 it will be no less than 76,2 m m2. This is what the head of RF Ministry of Construction, Housing and Utilities, Mikhail Menn, said at a session of the Ministry’s panel, attended by the first Vice PM, Igor Shuvalov.

Delivering the report on the results of the Ministry’s activity for 2015, he emphasized that in 2016, at the reduction of overall new housing supply volume, the 38% increase in number of newly built apartments is forecasted. In 2017 the increase will amount to 26,8%.

This is very important, since over 105,000 veterans of combat operations, invalids and their families are on the waiting list for improved housing.

As on February, 2016, only 256,200 m2 has been put into operation within the framework of the “Housing for Russian Family” program. The basic problem here is the lack of land plot for construction and infrastructure.

That is why the Construction Ministry offered to abandon the initial performance target as non-compliant with current capabilities of the housing construction market, as well as with citizen’s demand.

As for financing of the rental housing in Russia, a mechanism of mutual investment funds can be used for this. At that, the profitability for investors can match bank deposits, - he noted.

Mikhail Menn has also said that last year the Construction Ministry issued 310 construction permits, that is 17% more, and 133 permits for overhaul objects’ commissioning, that is 58% more. Beside this, 1210 document kits under special technical conditions have been considered.

In the area of housing and utility service a large work has been carried out to raise its transparency, to provide strict regulation of tariffs, remove administrative barriers, - said Mr Menn.

The full report of the Minister of Construction, Housing and Utilitieswill be published on this website in the near future.