Housing construction is growing due to local developers — DOM.RF

Housing construction in Russia last year grew at an accelerated pace, while for the first time in recent years its regional structure changed: the concentration on the TOP 10 regions in terms of the volume of housing under construction decreased. Developers, reports «Russian newspaper», launched a record 49 million sq. m of new projects (+21% year-on-year), and faster growth rates were demonstrated by regions outside the leading ten.

Launches in regions outside the top 10 regions grew by 38% over the year, and within the leading ten regions — by only 9%, notes a review by the Analytical Center DOM.RF. At the same time, the situation with the balance of supply and demand in the largest regions is heterogeneous — in five of the top 10 regions (including Moscow, Tyumen, Sverdlovsk, and Rostov regions) risks of supply shortage are emerging, that is, housing in a high degree of readiness is beginning to be in short supply. In the Leningrad Region and Krasnodar Territory, on the contrary, an excess supply is brewing. In the Moscow region, St. Petersburg and Novosibirsk region, the market situation is close to balance.

A similar picture is observed among the ten largest developers. Industry leaders are increasing the pace of construction more slowly than groups of companies outside the top 10.

We see that the share of the construction portfolio of smaller developers is gradually increasing. Last year, they increased launches by 25% (to 40.6 million sq. m.), while the top 10 increased launches by only 6% (to 8.8 million sq. m.). This is a good trend, which indicates the presence of healthy competition in regional housing markets. At the same time, the sales efficiency of the leading developers is still higher: the ratio of sales to completion is 96%, for others — 77%,” notes the head of the Analytical Center, Mikhail Goldberg.