Mikhail Men, Minister of construction and housing, says that in 2016 in Russia housing will be put into operation for 10% less than a year ago.
In his view, the General housing will be about 78 million square meters, with the largest decline for the commissioning of the observed in the individual housing construction. During the crisis, citizens prefer to ride out the tough times and even stop the previously started construction. As for the industrial construction of housing, there remained of last year’s volume of input of housing in operation.
The Ministry of construction is now of the opinion that so effective to date, the state program of subsidizing low mortgage rates needs to change. In its current form it should not be extended, as average mortgage rates in banks has fallen to the level of 12.7%, while the state subsidy allows you to pay the Bank lowering the rate to only 12%. Men explains that the new program needs to work differently and now the Ministry calculates various options.
The Ministry expects a reduction of the key rate of the Central Bank to the level of 9,5-9% per annum, which will enable all banks to cope with lower mortgage rates and no funding from the state budget.
The authorities are actively discussing the problem of financing regional developers in the construction of necessary infrastructure, and the Minister said it could be a alternative to the program of state support.
