Business talk

14.11.2016

State support and further lowering of administrative barriers were promised to the builders.

Moscow hosted the X MREF – the Moscow forum of real estate market leaders. The event, which is held annually by Vedomosti PH, was attended by representatives of federal and regional authorities, banks, investment institutions, real estate development companies, construction and service companies, consultants, analysts, as well as foreign experts.
The central event of the forum was the plenary session devoted to the role of the state in creation of a comfortable business environment in construction sector.

Giving a speech at the session, the Head of the Ministry of Construction of Russia Mikhail Men, reminded the audience that since 2017 the government decided to commit 20 billion rubles annually for creation of engineering, social and transport internal infrastructures for large residential projects.

“Creation of the state of engineering infrastructure will be supported by subsidizing interest rates on loans, – said the minister – and we will support directly the creation of social and transport infrastructures”.

Besides that, Mikhail Men said that Russia has once again improved its position in the World Bank Doing Business ranking in terms of “Obtaining a Construction Permit”. “Due to the efforts of the Government of Moscow and St. Petersburg, we have manages to climb up on 115th place in the latest ranking,  three years ago, when the Ministry of Construction was established, our country ranked 178 th,” the minister said. He also added that the Ministry continues to carry out reforms aimed at improving the situation with administrative barriers in construction industry.

In-line Quote

The volume of housing construction in 2016 will be not less than 77 million square meters in Russia. In his speech at the MREF forum Mikhail Men has summed subtotals for the major industry indicators. For the first 9 months of 2016, 49.5 million square meters of housing were commissioned, which is only 5.5% less than in the same period the last year. As the Minister said, the volume of prefab housing remains on the level of the last year, the decline is due to the individual housing construction.

“According to our forecasts, the country can commission around 77 million square meters of housing this year – it is the pessimistic scenario. As per the optimistic one,  we can complete more than 80 million square meters,” said the Head of the Ministry of Construction.

Stroitelnaya Gazeta