Minimal decline in new housing units built in Russia in H1 2010

2010-08-10

H1 2010 was a relatively stable period in terms of the number of new housing units built in Russia – in total, 248,800 housing units were built in the first six months of this year.

According to data released by the Federal Statistics Service (Rosstat), the total combined area of residential units completed in Russia in H1 2010 was 21.6 million m2, which represents a year-on-year decline of 0.1%. The situation is similar to that of H1 2009, when 21.6 million m² of new housing was completed, representing a decline of 0.3% in comparison with the same period in 2008.



Residential construction output by region

At 11.6% or 2.5 million square metres, Moscow Province accounted for the largest share of the total housing space completed in H1 2010. This was followed by Krasnodar Territory with an 8.4% share and 1.8 million m2 of housing units completed, which in turn was followed by St. Petersburg (4.6% and 1 million m2).



The aforementioned regions together accounted for more than half of area cover by total residential units completed in Russia in H1 2010. Of these, only St. Petersburg, the Krasnodar and Stavropol Territories, Nizhny Novgorod, Sverdlovsk and Tyumen Provinces reported a volume increase in residential units completed in H1 2010. The highest percentage growth within this group was observed in St. Petersburg, at 28.4% year on year. At the other end of the spectrum, the most significant decline – in percentage terms – was the City of Moscow, where housing construction output decreased by 31.8% compared to the same period one year earlier.
For the whole country, the highest growth – in percentage terms – in H1 2010 was reported in the Republic of Ingushetia, where residential construction output increased by 350% year on year and 65,100 m2 of new flats were completed for use. In contrast, the most dramatic percentage-terms decline was recorded in the Zabaykalsky Territory, where a total of 56,900 m2 of housing was constructed – down 55.9% on the previous year.



The role of private investors
The number of residential units completed by individual investors fell in H1 2010 to 79,400 units, or a total area 10.8 million m². This represents a year-on-year decline of 10.5% and equates to just over half (50.3%) of the total residential construction output in the country during this period.
In regions such as the Republic of Dagestan, the Republic of Kabardino-Balkaria, the Yamal-Nenets Autonomous District, the Republic of Udmurta, and the Belgorod, Lipetsk, Rostov, Tambov, Ulyanovsk provinces, the share of total residential output accounted for by private investors ranged from 83.3% to 96.3%. In the Republic of Karachay-Cherkessia, 100% of all new residential constructions were private investment projects.
The value of construction output in Russia in H1 2010 was RUB 1549.5bn ($52.0bn), which represents a year-on-year increase of 3.1%.




Mateusz Lasek
Business Editor
PMR Publications