When residents of “Khrushchev” will be relocated to new buildings: they promise to move the reconstruction of obsolete housing from a dead point
In Ukraine, a new version of the law on the reconstruction of dilapidated and dilapidated housing is being developed.
Every year, apartments in Khrushchev’s are getting cheaper by 15-20%, and selling them is becoming increasingly difficult. Such apartments in Kiev have long been in the ranking of the cheapest objects of capital’s real estate and the only way to turn the tide with the aging mass housing built in 1950-1970 of the last century is to start a large-scale reconstruction.
In Ukraine, a new version of the law on the reconstruction of dilapidated and dilapidated housing is being developed. Residents of the “Khrushchev” promise to resolve the issue of relocation to new buildings. About what officials promise and how developers relate to this, I learned the portal of the capital’s real estate 100realty.ua.
The reason why the reconstruction of old housing did not occur, according to officials and market participants, is due to imperfect legislation, the conditions of which are not interesting to developers. Accordingly, in order to start resolving the issue, it is necessary to interest construction companies. According to Lev Partskhaladze, the Deputy Minister of Regional Development, Construction and Housing and Communal Services, his department has developed such a legislative framework that will interest devolopers and residents of dilapidated housing.
Two options are currently being considered for resolving the issue of the old housing stock – its demolition or reconstruction. At the same time, demolishing old houses is beneficial for developers in large cities, where the cost of land is high and there is an active demand for housing. In small towns it is more realistic to carry out reconstruction.
The Ministry of Regional Development even considered the financial component, the potential benefit for developers. So, if the “Khrushchev” is about 3.5 thousand square meters. m, then the new building – about 10 thousand square meters. m. The difference in square meters is the commercial sale of apartments, with which the developer must recoup the investments and earn.
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Regarding the issue of reconstruction, developers in small towns can carry out major repairs of the Khrushchev’s and, to compensate for their costs and earnings, build several floors on which to sell apartments.
In addition, now the consent of all the residents of the old house for reconstruction or demolition is no longer needed – 75% is enough.
They are also reviewing the question of what will be the reimbursement ratio. In the current law, it is 1.5. It turns out that a resident of Khrushchev’s gets a new apartment 50% more than his old housing. For developers, this was not profitable.
Are developers ready
How to resettle residents of Khrushchev in new buildings
Reconstruction of Khrushchev’s quarters is potentially interesting for developers, provided that the law is adapted to market demands
In general, market players are positive about legislative changes and agree that the current law is unlikely to ever “work”.
“Today we are witnessing a situation where there is a law, and as such there is no such action, therefore, the announced draft law may raise the issue of reconstruction of obsolete housing from a long-term stupor. The current law for the start of reconstruction requires consent to the resettlement of 100% of residents, which is often impossible and is the most powerful obstacle, so it is very reasonable that the consent of 75% of residents is enough in the new bill. But besides the law itself, a prescribed implementation procedure is needed – a clear, simple and understandable to the developer, which will protect citizens and the state from fraud. In addition to this, if not absolutely everything, then at least reconstruction projects should be exempted from paying shareholding, which is actually a corruption component, and not a tool for developing the city’s infrastructure, ”says Andrei Ryzhikov, CEO and the managing partner of the developer DC Evolution.
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According to him, reconstruction projects are real investment projects that should be attractive to the investor, which means that they should initially resolve issues with a land plot and connecting to networks – all that complicate the life of a developer so much.
“The investor-developer must come to the prepared investment project, build a house for his money, resettle the tenants there and begin construction of a new one on the resettlement site. All. And no proceedings, collection of signatures and additional approvals. Everything rests on the economy. Current law provides for the reconstruction of buildings or their complete demolition. In order for the reconstruction to be cost-effective, it is necessary to build floors over the existing