The Analytical Center has published a new bulletin on the current trends in the Russian economy; this time it is devoted to the trends in private housing construction in Russia. It is an important sector of the construction industry and is an equally important part in household spending.
Private house construction is a key indicator of the financial state of the Russian households and their actual willingness to invest in real estate and take on certain risks, write the authors of the bulletin. Both during recessions and economic growth in the country in 2014-2017, the total number of new apartments and private houses built by developers and households per year exceeded 1 million.
In 2013-2018, 40-44% of the total floor area of new residential real estate comprised houses built by households, the experts note. However, while in 2015-2016 their total floor area and average size were in decline, 2017 saw a gradual return to pre-crisis figures. Meanwhile, the trend to reduce the average floor area of apartments in multi-family housing construction is preserved.
The highest share of private home construction in total amount of commissioned housing is traditionally found in the developed agrarian regions and in the developed industrial regions that rely primarily on extractive industries. In 2017, private houses with the largest floor area (over 179 square meters) in the country were being built in the agrarian-industrial regions of the central federal district. When it comes to materials, the favorites are brick, logs and prefab concrete slabs. Experts note that wooden houses are drastically different in terms of average floor area: 90-95 square meters as opposed to 150-170 square meters for brick, stone and prefab concrete slabs.
The smallest share of private houses in the total amount of commissioned housing was recorded in the finance and economic centers as well as in regions that mostly focus on exporting raw materials: here private homes made up no more than a fourth of the total amount of commissioned housing. However, the finance and economic centers lead the way in terms of average floor area (169 square meters). In all regions, the largest houses built by household have used bricks.
For more see the bulletin "Trends in private housing construction".
For the other bulletins on the current trends in the Russian economy, please see Publications.
Photo: from open sources