Aleksey Frolov: ‘The situation is very speculative regarding the price of housing in Kazan’
The average cost of housing in the Kazan market has increased significantly this year: according to CIAN, by 35%, reaching 182,5 thousand per square metre, according to the DomClick service — over 170 thousand. In general, in Tatarstan, Rosstat set the market price of a square metre of housing at the level of 131 thousand rubles per square metre — so far, the data are only for the third quarter of the year.
Commenting on the situation to Realnoe Vremya, First Deputy Minister of Construction, Architecture and Housing of the Republic of Tatarstan Aleksey Frolov noted that the state should move away from approving average prices in the real estate market:
“According to the cost of a square metre of housing in Kazan, the situation is very variable, speculative and unstable — there are pros and cons in it. Cons from the point of view of that it is very difficult to adjust to the banking system and the mass consumer to purchase housing. But my personal opinion is that the state should step aside in the matter of approving the average cost. In terms of solving social problems, providing housing for certain categories of citizens — these issues are regulated within each subject. And from the point of view of decision-making at the federal level, if they are public according to the market assessment, when they put us 150 thousand rubles per square metre and above — one can't say that. This is what concerns our capital, perhaps, where there is a certain demand. But the republic is not only Kazan, but also other settlements, and there the price tag is completely different.”
There are certain speculative points in the very issue of approving average market prices for housing, the deputy minister noted, stressing that he would not like to “stir up” this topic. Housing under social programmes in the republic is sold at a different price. “As for the market, there is a seller and a buyer, but there are also sellers who need to sell urgently, and they are ready to sell cheaper. And I would not give an estimate of the average cost of housing. If you take a tablet, open the “purchase of an apartment” on Avito, I am sure that we will see the cost much lower. That is, a real family who came to us in Kazan will be able to find an apartment for a lower price of a square metre, Frolov is convinced.
Extension of a preferential mortgage is one of the main events of the year
The results of the activities of the construction complex of Tatarstan for this year were summed up on 20 December at the meeting with journalists in the Ministry of Construction of the republic. Thus, the target of housing commissioning for 2022 in the amount of 3,092 thousand square metres set for the region by the Ministry of Construction of Russia has been fulfilled: at the end of the year, Tatarstan exceeded the plan by 12,2% relative to the previously planned indicators. The driver was individual housing construction — 2 million 239 thousand square metres, the share of multi-apartment investment housing accounted for 747 thousand square metres, 105,8 thousand square meters were introduced under social mortgage.
“One of the main events of the year for the construction industry is the extension of preferential mortgages — this is one of the most important decisions," Aleksey Frolov answered the question of Realnoe Vremya. “The second important event is price regulation, the decision was made in the spring. The government worked very clearly and rigidly, regulating the value set by speculators who tried to make money on our common problem. Thirdly, it is important that none of the republican and federal programmes have been sequestered, moreover, a decision is being made to support additional infrastructure repairs, which we are now closely engaged in. There are certain challenges that we have faced, Rustam Nurgalievich heads the state commission of the State Council of Russia For Construction, Housing and Communal Services and the Urban Environment. All issues were discussed, we were heard at the federal level, and now these issues are already being materialised in documents and federal programmes.
Tatarstan continues to hold a leading position in the Volga Federal District and is among the top 5 regions of Russia in terms of housing commissioning. If in the early 1990s 1,2 million square metres were commissioned in the republic, then since 2007 at least 2 million were commissioned. Last year, a record 3,11 million square metres of housing were introduced in the republic for the first time, and this year they have already overcome last year's result. “At the same time, the year has not yet been completed, the line has not yet been drawn," Frolov stressed. More than 40 republican and about 20 federal programmes are being implemented in the republic for the construction and repair of social and cultural facilities, apartment buildings, modernisation of engineering infrastructure and renovation of public spaces with a total volume of over 122 billion rubles.