17 December 2003 08:59
RUSSIAN POPULATION OWNS $50 BLN WORTH OF HOUSING - YAKOVLEV
MOSCOW. Dec 17 (Interfax) - The Russian public owns residential real estate worth a total of about $50 billion,
Deputy Prime Minister Vladimir Yakovlev said at a mortgage conference in Moscow.
The public's residential real estate assets amount to about $50 billion, he said.
The deputy prime minister said that about 69% of residential real estate is in the hands of the population.
At the same time he noted that at the moment in Russia there is about 87 million square meters of dilapidated
residential space, and this indicator will increase by 20 million square meters next year. He said that 11% of Russian
residential space has not been renovated for over 30 years and about 250 million square meters of space is in need of
reconstruction.
Speaking about the development of mortgage crediting in Russia, Yakovlev noted that a so-called mortgage club has
been set up, in which a lot is said but little is done. The problems are known to everybody, it is simply necessary to
deal with them, he said.
Among obstacles to the development of mortgages in Russia, he noted high interest risks, a lack of long-term
financial resources and the possibility of attracting funds from the Pension Fund, and also the need to prepare about 36
legislative documents and resolutions.
In addition, the deputy prime minister said that banks consider that the absence of a temporary residence fund in
Russia is also slowing things down.
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