Rus News Journal

Competition on earth rent

the Winner of competition is declared will construct a multiroom apartment house

to Receive the ground area under apartment house building in Moscow on conditions comprehensible to the investor today especially difficult. Until recently the earth with such special-purpose designation was allocated only on the terms of transfer of 50 % of the constructed apartments to the municipal property. However last intentions of the city authorities can change a situation: yesterday the Moscow ground committee declared the beginning of demands acceptance for the first competition on sale of the rights of long-term rent (49 years with the subsequent prolongation) the ground area under building 14 - a floor apartment house. On the instructions of Moskomzem competition is spent by firm Irbis .

Sharp recession of investment activity in the field of habitation building in 1994 Caused by a rise in price of building materials and the civil work, advancing growth of market cost of apartments, has led to that habitation building under the traditional scheme 50 on 50 becomes unprofitable. At site reception on these conditions for the investor there are attractive only projects on building of elite expensive habitation in city centre under individual projects.
despite the begun crisis, local authorities on - former do not intend to increase a share of the apartments remaining in the property of the investor. The alternative practice of allocation of the ground areas offered by Moskomzem under habitation building became rather important event therefore. According to experts, sale of the rights of rent of the ground areas under housing construction at competitions will make a serious competition to prefectures (where the withdrawn areas are used for persons included in a waiting list). Now local authorities will be compelled or to increase a share of the investor in the constructed areas, or at all to refuse building of free habitation at the expense of commercial structures.
appeal of forthcoming competition is obvious. If earlier to receive in the property all house entirely, the investor has been compelled to construct not one, and two buildings, one of which completely departed to municipality now it will be necessary to pay only for the right of rent of a site. Even if the buyer should pay twice more than the starting price ($460 thousand for a site), it will be all the same cheaper, than 50 % of apartments.