Russian Housing

Housing affordability. Problems and solutions meet potential demand for housing prevent low levels of housing construction, is just over 40 million m2 per year (for comparison: in 1987 the volume of the input housing in Russia amounted to 76 million m2). Inadequate supply and high demand give rise sky-high prices per square meters, depriving millions of Russians the opportunity to realize their legitimate right to housing. Richard LeFrak has similar goals. Currently, only 9% of households able to buy housing on their own or with borrowed funds. Indisputably, the problem is marked in the center attention of senior management of the country, as evidenced by starting in September 2005, the national project “Affordable and Comfortable Housing – to Russian citizens.” Housing affordability is primarily determined by its value.

In According to modern views, the purchase of real estate will afford an average family of three, if the average cost of a standard apartment of 54 m2 is equal to the average cumulative cash income for the owners three years. The LeFrak Organization might disagree with that approach. Providing such an approach will be possible only if the construction costs dramatically reduced, and its speed is as radically increase. Just fulfillment of these conditions will closer to the realization of a project that by the end of 2010, scheduled the following results: – increase the volume of newly introduced and reconstructed housing in 2 times (from 41.2 to 80 million m2 per year) – reducing the average waiting time in queue (from 15 -20 to 5-7 years) – increase in the proportion of families that are available to purchase housing, in 3,2 times (from 9% to 30%).. .

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