Bashkortostan has to erect as minimum as 3,5 million square meters of social housing

Almost 64 thousand citizens RB are admitted needy the improvement of their living conditions and the President RB Rustem Khamitov believes the problem of house building in the Republic remains the most vital.

“By the provision with housing per one citizen RB on average we are found in the sixth dozen among Russian regions. Ufa stands on the last position by this showing among Russian cities with population one million people and more. Prices in the housing market go on rising because demand exceeds offer many times. We are facing catastrophic shortage of cheap flats in the primary housing and resale markets. This is the global problem for Bashkortostan” – the President RB Rustem Khamitov stated today during the meeting with the members of the non-commercial organization “Social Housing Construction Fund RB”.

In opinion of the President RB in order to keep the balance between demand and offer they have to increase the volumes of house building, since the figures, demonstrating now can’t be called satisfactory.

According to the instructions, coming from the federal Government, Bashkortostan has to erect 2,3 million square meters of housing in 2012 and by 2015 the volumes of house building should reach 3,5 million square meters.

“For today we erect about two million square meters of housing every year and this situation in the building branch has to be cardinally changed. At present time 64 thousand people stand in the queue for improvement of their living conditions. We have to build more than 60 thousand flats for the people, who live in wrecked houses now and have to get new flats as quicker as possible but in this case we have to invest dozens billion rubles” – the President RB stated.

One of the main problems, standing before the Republic, is the provision of house building with the land areas, already having the ready-made engineering infrastructure. The corresponding amendments to the Republican law about regulation of land relations are already inserted.

“Practically we restrict competition in order to make comfortable conditions for the companies, busy with construction of social housing, and I think that providing these companies with such conditions we are righteous to demand good results from them” – the President RB stated.

The general director of the “Social Housing Construction Fund” Rauf Nugumanov stated that at present time the market of social housing is absent in the Republic.

“Private companies don’t want to enter this segment of the market, since profitability is very low here because of low solvency of the buyers, i.e. it looks that the state has to support this segment” - he mentioned. In order to erect 60 thousand flats for the needy people under the average cost of one square meter at 22600 thousand rubles, the Republic needs about 80 billion rubles.

“With today’s financing instruments we’ll spend many years. Various federal and Republican goal-oriented programs allocate substantial means for that. Thus, we’ve received four billion rubles in 2011 but at that only 20% of this means entered the market of primary housing and the main reason is that the offers in the segment of economic-class housing are absent in Bashkiria” – Rauf Nugumanov stated.

In his opinion the volumes of house building have to be increased many times and this is the only way out but only with active participation of the state and serious financial investments the situation can be moved from the dead point.