19 February 2013, Tuesday, 16:29

Rustem Khamitov: «Housing rent subsidized by the state will reduce prices in the real estate market»

author: Elvira Latypova

In Bashkortostan the republican program on development of rental housing construction till 2015 is developed. The rent subsidised by the state as affordable alternative to the mortgage was considered on Tuesday at the meeting in the Presidential Executive Office.

“We need to search for effective ways to solve housing problems of needy citizens, public sector employees. One of such ways is development of social rental housing market,” Rustem Khamitov said. “I will underline — social one. Cost of such housing should be less than average rental rates and below monthly payment for the similar habitation purchased as a mortgage.”

According to the President, «social rent subsidised by the state is urged to stabilise prices in the real estate market and will lead to their decrease».

According to the head of Ufa administration Irek Yalalov, the market capacity of rental housing in Ufa makes about 5 % of all habitation — from one to one and a half million square metres, or 300 apartment houses. According to the Ufa city administrator, the market of social rent is available, but «under condition of its total subsidising from the state and municipal budgets».

For the private companies this project does not represent any interest as the payback period of such profitable houses reaches almost 20 years. Initiators can be either large enterprises solving housing matters for their employees, or municipalities. According to Irek Yalalov, in Ufa the prospect of rental houses construction was considered as attractive only by LLC "Ruscam-Ufa" and JSC "Amstar" companies as they were interested in privileges and benefits. Other enterprises preferred to be noninvolved.

Rental housing construction is possible only on principles of state-private partnership, the Chairman of the State Committee RB on Construction and Architecture Kamil Mansurov is sure.

At the meeting it was said about experience of the developed countries. In Germany, for example, the share of tenants makes 57,4 %, in the Netherlands — 45 %, in the Great Britain — 29,5 %. In Russia 86 %of habitation is in property, thus available dwelling stock is extremely insufficient.

The project implemented now in Buzdyaksky region with the assistance of "Tavros" LLC («Bashkir Meat Company») arouses the great interest. The joint work scheme under the project was presented by the General Director of the Fund of Social Housing Construction (FSSZH) RB Damir Minnibaev:

“The municipality allocates land plots. We (FSSZH RB) act as builders. "Tavros" will act as the investor — it will bring 30 % of funds as an initial payment. And the Agency for Housing Mortgage Lending will cover other expenditures through the authorised bank for 20 years under 11 % per annum.”

The next weeks the five-sided agreement will be signed between all participants of the project.

Similar projects are realised in other Russian regions, in particular, in the Kaluga and Novosibirsk Regions.