Coldy Real Estate Digest for October 6 - 31

• Russian citizens may lose the right to choose the company, that manages an apartment building. This power can be transferred to the housing management operators. The creation of such a body which will, among other things, compensate for violations that lead to failures in buildings, is spelled out in the draft strategy for the development of the construction and housing and communal services sector in Russia up to 2030, which was developed by the Ministry of Construction.
• The government will expand preferential mortgages to cover private homes. According to a decree published on the government's website, borrowers can now take out a preferential mortgage at 7% for purchases of private houses with land plots in Russia from developers, legal entities or individual entrepreneurs under contracts of sale, for the construction of individual houses under construction contracts or to purchase land plots under contracts of sale and purchase and pay for the construction of individual residential houses under construction contracts.
• According to JLL data, the volume of rent and sale transactions, concluded in the 3rd quarter of 2021 in the Moscow office market increased 2,4 times compared to the same period of the last year and amounted to 347 thousand square meters. In total for January-September 2021 the index reached 996 thousand sq.m., which is 61% higher than in 2020, and is the highest value among comparable periods since 2013. Despite the increase in Covid-19 rates, the year-end demand will reach the 1.2 million to 1.3 million sq. m. mark, according to a JLL press release.
• The number of Russian families who will be able to improve their housing conditions with the help of mortgage loans will grow from the current 20% to 33% on the horizon of 2025. The implementation of state and regional programs, the general digitalization of mortgages and targeted support for privileged categories of the population will play a significant role in this.
• In October 2021 the maximum prices for super elite new buildings in Moscow reached 7 million rubles per sq.m. at an average cost of 767,5 thousand rubles per sq.m. No price correction is expected in this segment.
• V. Putin suggested that the maternity capital should be indexed according to the actual inflation rate. "Right now, in accordance with the law, maternity capital is indexed according to the forecast inflation rate. I suggest that from 2022 the maternity capital should be indexed according to the actual inflation rate for the previous year, rather than the forecasted rate," Interfax news agency quoted Putin. He asked that the law be amended accordingly.

Read more about the above-mentioned events and other important real estate market news in the magazine Real Estate Digest by Coldy.