A jump in the commissioning of individual housing construction was recorded in August

In August, the individual housing construction (IHC) sector showed its highest growth for the year—the volume of private house commissioning amounted to 6.7 million square meters. m. This is explained both by the end of the summer construction period and by the development of mortgages in this sector: the pace of loan issuance, with a low base last year, increased noticeably in 2023. However, in general, in eight months, individual housing construction has not yet been able to achieve last year’s result.

In January-August, 70.2 million square meters were commissioned in Russia. m of housing, which, as follows from Rosstat data, is 0.7% higher than the 2022 figure for the same period. In August, commissioning volumes are estimated at 10.18 million square meters. m (plus 12% year on year). The growth since the beginning of the year was ensured by the commissioning of multi-apartment buildings – 28.1 million sq. m. m (increase 8%). In August, this sector showed a slight decrease – 3.48 million sq. m. m versus 3.5 million sq. m a year earlier.

The driver of growth in August was individual housing construction, the volume of commissioning of which showed a surge to 6.7 million sq. m. m, which is 19.5% higher than the very successful figures of August 2022. This is the best result since the beginning of the year. Previously, a significant increase in individual housing construction was recorded only in January (plus 12%, which could be explained by the postponement of commissioning from 2022), then the volumes lagged behind last year’s values. In total, 42 million sq.m. were commissioned in January–August. m of private houses (minus 3.8%).

Let us remind you that the individual housing construction sector has been actively growing in recent years: in 2019, the commissioning of private houses was estimated at 38.5 million square meters. m, in 2022 – 57.2 million sq. m. Interest in the segment was fueled by both the pandemic and preferential programs. Thus, in the first half of the year, according to DOM.RF, 37.2 thousand loans worth 159.2 billion rubles were issued, which exceeds the figure for the entire 2022. More than 90% of loans are loans with government support. Statistical factors also played a role in past years – the registration of previously built houses as part of the dacha amnesty and the free gasification program. With the exhaustion of such factors, a sharp decline in the commissioning of individual housing construction began in November 2022 (see “Kommersant” dated December 15, 2022), but this year the sector is gaining momentum again.

As the National Agency for Low-Rise and Cottage Construction (NAMIX) explained to Kommersant, growth in August was ensured by a combination of two factors – the end of the construction season for individual housing construction (the majority of those who started construction in March-May strive to complete it by the fall) and the development of mortgages for self-construction. Now, the agency adds, a new factor has also appeared – the requirement of banks to complete construction and provide the house as collateral. “Banks can stimulate the acceleration of commissioning at the stage of readiness of the thermal circuit (foundation, frame, roof, doors and windows) by reducing the rate from the moment the object is provided as collateral,” NAMICS explains.

Evgenia Kryuchkova