69.4 million m² of housing space activated in Russia in 2013 – best performance since 1989
Increasing household income, insufficient housing space per capita, a decline in mortgage rates, and improving business sentiment have been among the key drivers in supporting the solid upward trend in residential construction in recent years. Increasing support is also being provided by the implementation of federal and local residential development programmes, though their influence is still limited. About 1.4 million m² of housing activated in Russia in 2012 was developed with funding from the federal budget, accounting for only 2.1% of the new supply that year. Another 1.6 million m² or 2.5% of 2012’s supply was developed with financial support from regional and local budgets. Last year, mostly due to a sharp deceleration of economic growth in Russia, which forced regional administrations to scale back planned spending for 2013, the state’s contribution to housing construction is unlikely to have improved.
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