6.7% decline in residential construction in Russia in 2009

2010-02-07

In 2009, 701,300 residential units were built in Russia, taking up 59.8 million m². This reflects a reduction of 6.7% in comparison with the corresponding period a year ago, when the figure was 64 million m².

The most substantial share as a proportion of the total volume of housing completed in 2009 was reported in the Central (31.3%), Volga (21.3%) and Southern (15.8%) federal districts. Among the federal subjects the Moscow Province was the leader in terms of volume, accounting for 13.8% of all residential housing commissioned in the country during this period. The figures for the Krasnodar Territory (5.7%), the City of Moscow (4.5%), the City of St. Petersburg (4.4%), the Republic of Bashkortostan (3.9%), the Republic of Tatarstan (3.4%), the Tyumen Province (3.3%), the Rostov Province (3.0%), the Sverdlovsk Province (2.7%) and the Chelyabinsk Province (2.4%) were also relatively substantial.
These federal subjects accounted for almost 50% of all commissioned housing in Russia last year.

Only the Far Eastern Federal District reported an increase, of 5.1%, in the volume of developed housing for 2009. In the other six federal districts a 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 14.9%, 13.3% and 12.8%, were observed in the Urals, Siberian and Northwestern federal districts. Among the federal subjects the most substantial reductions in the volume of completed housing were seen in the Republic of Ingushetia (46.1%), the Yamal-Nenets Autonomous District (43.1%), the Omsk Province (40.4%), the Republic of Komi (37.8%) and the Nenets Autonomous District (33.5%). At the same time, the most substantial increases were observed in the Chukotka Autonomous District, the Republic of Adygeya, and the Murmansk Province: 60%, 48.6% and 40.0% respectively.

The number of residential units completed by individual investors rose in 2009 to 207,000, taking up 28.5 million m² between them. This represents an increase of 4.3% in comparison with 2008 and accounts for 47.8% of total residential construction in the country during this period. This proportion was considerably higher (82.2-97.5%) in the Adygea, Bashkortostan, Dagestan, Ingushetia, Kabardino-Balkaria and Chechnya republics.






Katarzyna Koprowska
Business Editor
PMR Publications
katarzyna.koprowska@pmrpublications.com