Moscow will put up for sale half of the housing under the renovation program

The Russian capital plans not only to repay its expenditures for the renovation program in the amount of 3 trillion rubles, but also to earn money. To do this, it needs to sell at least 15 million square meters of housing for about 140 thousand rubles for each square meter.
To recoup the costs of the program of renovation of housing stock, the Moscow authorities are planning to sell part of the built housing, told the "Vedomosti" representative of the City Hall. According to him, to resettle the residents of the city will have to build 17-18 million square meters. M of housing, about 15 million square meters. M need to sell on the market to pay back the project. The whole program is estimated at 3 trillion rubles. It will last for 15 years, the construction will be conducted all this time, warned the representative of the mayoralty.

June 15 will end the vote on the fate of 4,546 five-story buildings: residents will decide whether their homes will enter the renovation program. The area of ​​all these houses is about 15 million square meters. Moscow promises to provide housing a little larger area - due to the large corridor and hallway the coefficient will be on the order of 1.2.

 Cost of construction of 1 square. M of housing - 70 000-80 000 rubles, and the price - 140 000 rubles. According to the representative of the mayoralty, so in 15 years the city will return almost all investments. To implement the project only at the expense of the budget is difficult: even if all the 15 years of the surplus of the Moscow budget will be annually 100 billion rubles., Still not enough for renovation, says Fitch Ratings senior director Vladimir Redkin. In practice, all large construction projects have always grown significantly, he continues, including because of devaluation and inflation. In 2016 Moscow received a record income of 1.85 trillion rubles, and the surplus amounted to more than 120 billion rubles.

The main operator of the renovation program will be the Moscow Foundation for the Renovation of Residential Buildings. The fund will carry out the functions of the developer: execute land plots, order development of projects and conduct selection of construction contractors through bidding. In the future, the fund will be able to sell surpluses built under the housing program, said the head of the Department of Construction of Moscow, Andrei Bochkarev.

 The first city hall is going to settle houses in which the majority of residents voted for participation in the renovation program and in which the highest percentage of wear and tear.

The density of quarters of five-story buildings is about 9,000 square meters. M per 1 hectare; After renovation it will increase, but it will still be lower than the average density of 25,000 sq. M. Laid in the general plan. M per 1 hectare, promises a representative of the City Hall.

The previous renovation program showed that the proportion can be commercially profitable when 30% is given to the city, and 70% to investors, comments Pavel Bryzgalov, the director for strategic development of FGC "Leader": the developer has a very serious burden on related work - engineering support, demolition Buildings, removal of networks, etc. It is now assumed that the program will be implemented by the city itself, the proportion of 50 to 50 is justified, land and conciliation procedures will not create additional costs, Bryzgalov said.

All 15 years of sale of the constructed housing will be systematically coordinated with the market, so the impact of the renovation program will not be radical, believes the director general of the MCC, Daromir Obuhanich. Bryzgalov agrees with him: "The maximum is local overstocking in the area, if there is both a commercial project and a construction for resettlement."

 15 million square meters. M increase the supply by 20%, says Maria Litinetskaya, General Director of Metrium Group: a very significant increase, it will pull down prices in the mass segment, reduce sales of developers, they will have to consolidate or stop the development of new sites. Last year, Moscow introduced 3.34 million square meters. M of housing.

President of SC "Granel" Ilshat Nigmatullin believes that the renovation program will affect the secondary real estate market: new housing will appear in convenient locations. He expects a 5-10% drop in the secondary market and a minor - on the primary: there are not so many economy-class projects in the classical sense in Moscow.

The representative of the mayor's office indicates that among the buyers there will be residents of demolished five-story buildings, the city will offer discounts up to 20%, installments and other benefits.