International investment an option for southern Russian house building programme

Companies from abroad could be called on to participate in the ‘Housing for Russian Families’ state construction programme in the Krasnodar Region of southern Russia if the work proves beyond the capacity of local contractors, deputy minister for housing and communal services Aleksandr Plutnik suggested last month.

“We are counting on Russian builders showing interest by securing long-term orders to build houses up to 2018, but if not, there are Chinese companies who are prepared to come and build this accommodation,” said the minister, who confirmed that negotiations had already been held with some of the companies.

While these are the only talks to have been held to date, the fact that the government is already considering looking abroad is good news for international firms looking to get involved in the project and the region.

Announced by the government this spring, the programme will see over 25 million square metres of living space constructed, providing affordable housing for 460,000 people. As one of three pilot regions, the Krasnodar Region is set for a big part in the project – not only will 43,000 homes be built there (for which plots have already been confirmed), the programme also makes plans for new schools, clinics, sports facilities, shopping centres, parks and playschools.

The programme is one reason why Southern Russia could be valuable for companies looking for new markets to enter, and the YugBuild building and interiors exhibition next March in Krasnodar is a long-established meeting place for the region’s buyers. For more information about how coming to YugBuild can help you do business in this market, contact ITE today.

Source (Russian)

Article photo – flickr.com (Epic Fireworks)

Related Article