Putin instructed to provide 33 sq. m of housing per person by 2030

President of the Russian Federation Vladimir Putin ordered to provide citizens with housing with an area of at least 33 square meters per person by 2030 and at least 38 square meters by 2036. This was reported in a decree published on the Kremlin website.

General Director of PIA Real Estate Maxim Eltsov, in a conversation with a Tsian.Zhurnal correspondent, noted that “despite the apparent bravura, the indicator is quite achievable.”

“Let's assume that in 2030 the population will be 147 million people. Using simple mathematical calculations, taking into account current values, we find that we need the volume of housing to increase by 635 million square meters. m. At the same time, commissioning in 2023 amounted to 110 million square meters. In seven years, it is quite possible to achieve the required figure, taking into account the disposal of housing. No miracles are needed,” the expert emphasized.

The specialist also added that preferential mortgage programs do not contribute to the growth of housing affordability, and they will not help the state in achieving the target.

“In order for the volume of housing to grow, there is no need to artificially stimulate demand - this never leads to good things, and the current price gap between primary and secondary housing demonstrates this perfectly,” said Maxim Eltsov.

In his opinion, the problem needs to be solved at a completely different level - to simplify access to land resources, increase the speed and quality of planning of urban areas, and simplify the construction approval procedure.

“We need to do everything possible to make it simpler and easier for both companies and individuals to build,” the speaker concluded.

Executive Director of the Moscow Investors Club Vladislav Preobrazhensky believes that the goal set by the president will be achieved and even exceeded.

“The previously adopted Strategy for the Development of the Construction Industry and Housing and Communal Services until 2030 states that it is necessary to reach the volume of residential real estate commissioning of 120 million square meters. m, which is quite achievable given that the current pace of construction will gradually increase, since many Russian regions are very far from the target of one square meter of completed housing per person,” the specialist said.

According to Vladislav Preobrazhensky, the main task is to convert the population’s potential demand for housing into a solvent one in such a way as to avoid new price hikes, as was the case before.

“Based on this, we are not talking about long-term mass programs to stimulate demand in the form of state preferential mortgage programs, but about a general alignment of the economic model in the state in such a way that market factors play the main role in the balance of supply and demand,” he concluded.

Director of the secondary real estate department of Est-a-Tet Yulia Dymova said that the footage of 33 square meters per person determines, in particular, the continuation of the same policy regarding creating a family, because “this matters when there are children and a family.”

“Therefore, of course, there will be the very minimum request, these are objects: full-fledged one-room apartments and multi-room apartments. Regarding the resource, we can say that the presence of one or another preferential program and other social programs really contributes to the accessibility of housing for citizens,” summed up Yulia Dymova.

Source: cian.ru