Real estate construction outside the TTC may become 10% cheaper
The Moscow government recently decided on benefits for developers building commercial real estate outside the Third Ring Road. According to experts, such an innovation can reduce the cost of building construction by 8-10%. But even such a small figure at first glance can seriously improve the economy of some projects.
“The shortage of jobs outside the TTK is still felt quite strongly, so we decided to take the next step: introduce financial incentives for investors creating jobs outside the center” said Moscow Mayor Sergei Sobyanin.
Recall that in the first year of construction or reconstruction of a building in Moscow, the developer must pay the city budget an additional increased payment for the land plot, the size of which depends on the building density and ranges from 5% to 80% of the cadastral value. The adopted decision of the Moscow government cancels this additional payment of developers implementing projects for the construction of commercial real estate outside the Third Transport Ring. This benefit will not apply to the construction of housing or apartments.
Andrei Grudin, Chairman of the Board of Directors of Pioneer Group of Companies, considers this innovation useful. “Moscow investors needed a similar initiative. The positive impact of this decision will become noticeable in the future when business points outside the center begin to appear. This will improve the economy of remote areas of Moscow, increase the flow of investments there, and therefore, improve the quality of the urban environment as a whole” said the expert.
Source: Stroitelnaya Gazeta