8.3% decline in residential construction in Russia in Q1 2010

2010-05-04

In Q1 2010, 105,300 residential units, taking up 9.6 million m², were built in Russia. This reflects a reduction of 8.3% in comparison with the corresponding period a year ago, when the figure was 10.4 million m².

The most substantial shares as proportions of the total volume of housing completed between January and March 2010 were reported in the Central (25.7%), Volga (20.0%) and Southern (14.8%) federal districts. Among the federal subjects the Moscow Province led the field in terms of volume, accounting for 9.1% of all residential housing commissioned in the country during this period. The figures for the Krasnodar Territory (9.0%), the Republic of Tatarstan (5.3%), the Tyumen Province (4.5%), the City of St. Petersburg (4.1%), the Nizhny Novgorod Province (3.8%), the City of Moscow (3.5%), the Rostov Province (3.4%), the Stavropol Territory (3.1%), the Republic of Bashkortostan (2.7%) and the Leningrad Province (2.7%) were also relatively substantial.
These federal subjects accounted for over 50% of all commissioned housing in Russia during Q1 2010.

Five federal districts (the Southern, North Caucasian, Urals, Siberian and Far Eastern) reported an increase in the volume of housing developed between January and March 2010. In the other three federal districts a significant reduction was recorded, and this had an adverse effect on the total volume of housing completed in the country as a whole. The most significant year-on-year falls, of 25.8% and 19.1% were observed in the Central and Northwestern federal districts. Among the federal subjects the most substantial reductions in the volume of completed housing were seen in the Kamchatka Territory (90.1%), the Kurgan Province (70.1%), the Kursk Province (62.8%), the Zabaykalsky Territory (58.9%) and the City of Moscow (52.9%). At the same time, the most substantial increases were observed in the Republic of Ingushetia, the Altay Territory, and the Bryansk and Amur provinces: 480%, 420% and 190% respectively.

The number of residential units completed by individual investors rose in Q1 2010 to 38,800, the residences taking up 5.3 million m² between them. This represents a reduction of 3.4% in comparison with Q 1 2009 and accounts for 55.3% of total residential construction in the country during this period. In the Tyva and Karachay-Cherkessia republics, the Kamchatka Territory, the Nenets Autonomous District and the Magadan Province, all residential units were completed by individual investors.







Katarzyna Koprowska
Business Editor
PMR Publications