On December 20, 2017, Vladimir Putin chaired a meeting of the Council for Strategic Development and Priority Projects in the Kremlin, which was convened to discuss the implementation of the housing development strategy. The President mentioned that large volumes of housing should not compromise the quality of new housing.
‘No one needs a race for square meters, so we should not build uncomfortable, poor quality housing’, Vladimir Putin said. ‘We must build not just a large amount of housing, but also housing that is modern. And here it is important not only to update the standards, but also to find economic incentives for developers to build new residential buildings based on advanced design solutions and technologies, using quality modern materials. On a par with housing people need parks, squares, playgrounds and sports grounds and social infrastructure – in a word, everything that forms the image of cities and creates a favorable environment for life.’
‘Realization of a priority project on creating a comfortable urban environment will positively affect the volumes of housing. Annually up until 2025, 25 billion rubles will be allocated to shaping a new image of cities and improving quality of life in Russia’s cities’, stated Mikhail Men, Minister of Construction, Housing and Utilities of the Russian Federation.
Mikhail Men also added that a subprogram of stimulating the development of housing construction facilitates the increase of construction volumes and improving the affordability of housing within the Integrated Development of Territories. ‘In 2017 we obtained a support for over 60 housing construction projects in 32 regions with construction volume over 6 million square meters of housing. There are 92 public amenities under construction: schools, pre-school facilities, health centers; and also 126 km of internal development roads. The means from federal budget are preliminarily allocated to construction of infrastructure facilities. In 2018 we plan to put 100 projects into operation involving 8 man square meters of housing. It will allow exclude infrastructure costs from a per square meter price.’
According to estimations, around 1.5 man families in Russia might take out mortgage loanты in 2018, said Alexander Plutonic, CEO of DOM.RF. Young families under 35-years-old account for around 50% of borrowers. They are used to new technologies in their daily life. ‘We have to find a new way to cater to their needs’, said Plutnik.
‘In cooperation with the Bank of Russia we are working on the standards of responsible mortgage loans system together with leading banks’, noted Plutnik. ‘We carried out several expanded studies and learned that in the following 5 years around 8 million families in Russia will take mortgage loans. It is significant to offer them a mechanism to improve their living conditions and problems, rather involve them in infinite trials that follow borrower default.’
According to Denis Leontiev, around 40% of residents of Russia’s cities do not have green areas within walking distance to their homes; streets in the cities and towns are congested; residential areas lack decent workplaces, though 60% of citizens prefer to work near their places; many people are dissatisfied with ecological situation.
‘Modern guidelines imply unified parameters and mechanisms that ensure a balanced level of living environment. For instance, on the one hand, a unified standard of lane width of a roadway of 3.5m saves street traffic capacity and makes traffic safer; on the other hand, it allows to maximize space or pedestrians by 15% in the whole city’, stated Denis Leontiev.
75% of Russians reside in cities, which are the centers of a new economy. Urban dwellers contribution accounts for 60% of national GDP and this number will grow further.