Local authorities entitled to decide on industrial zones development


According to the federal law signed on July 3, 2016, local authorities can commence an auction on the results of which it can award a contract for comprehensive development of some communal areas.

As explained in the Moscow department of urban planning policy, this order applies to areas where at least 50% of the total area is occupied by unauthorized constructions; objects recognized as dangerous and subject to demolition; objects subject to demolition or reconstruction by targeted programs; plots of land, the permitted use of which do not correspond to the use specified in the land use and development rules (PZZ).

In addition, the new law provides the procedure for development of territories on the initiative of right holders of land or real estate objects. Documentation on land planning is approved without a public hearing.

“In case of construction of communal, transport or social infrastructure on the state-owned land at the expense of a right holder, a contract can allow for certain fiscal reliefs and reduced rate of rent,” said the Head of the Department Sergey Levkin.

As it was announced earlier in the first half of 2016 29 facilities of total 0.74 million square meters were built on the territory of Moscow’s industrial zones, accounting for 22.6% of the total commissoning rate of real estate in the capital. The comparable figure in 2015 amounted to 1 million square meters, or 25%.

Chairman Moskomstroyinvest Konstantin Timofeev reported that about 270 sites on the territory of Moscow’s industrial zones have the potential for future development.


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