Demolition program for five-story buildings

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The Moscow government’s program for the demolition of five-story buildings may face a number of problems. As part of the program for the reconstruction of the five-story fund, calculated until 2010, the Moscow authorities intend to demolish about 6 million square meters. m of dilapidated housing. However, despite the interest of a number of large developers in large-scale investment contracts, developers are paying more and more attention to the location of plots for subsequent development and the class of houses being built. According to experts, problems with the implementation of the program may arise in a number of facilities, in particular, in the “non-prestigious” Eastern and South-Eastern districts.


Five-story story

The beginning of the massive reconstruction of the five-story panel housing stock in Moscow was laid back in 1995 by a corresponding decree of the Moscow government. However, the decree of the Moscow government dated January 20, 1998 “On the progress of reconstruction of the five-story and dilapidated housing stock of the city until 2000” became the fundamental document that determined the strategy and tactics of work on the reconstruction of five-story buildings. As a result, already in 1998, 335.7 thousand square meters were demolished. m of five-story panel houses, and commissioned 933.5 thousand square meters. m of new residential space.

In 1998, more than 6 thousand families were relocated from the demolished buildings. At the same time, for the period 1997-98, the share of the city under investment contracts increased from 29% to 32%.

Since then, as part of the program, the Moscow government has adopted a number of orders to increase the volume of reconstruction, and in the summer of last year, a program for the reconstruction of the five-storey fund until 2010 appeared. According to the Novaya Ploschad company, from 2000 to 2010 the demolition of a five-story panel housing stock in the amount of 6 million square meters is planned. m.

According to Erast Zhiryakov, the head of construction projects of MIAN-Development CJSC, the panel “Khrushchevs”, whose 25-year service life has long expired, are to be demolished..

In addition, due to the forced resettlement, the “younger” five-story buildings were also demolished. Such a situation, for example, developed on the construction sites of the Third Transport Ring and in areas where the strategic tasks of the city were being solved. “Those buildings that hinder the development of the city are being demolished,” says Zhiryakov.

According to Dmitry Popov, head of the analytical department of Novaya Ploschad, the program is currently developing most actively in areas where, instead of five-story buildings, the developer has the opportunity to build elite housing and business class houses. “The brightest example is” Kvartal on Leninsky “, which has been sold by the” Kvartal “company for many years.

But in remote residential areas, especially in the least prestigious Southeast and Eastern districts, where the profitability of reconstruction is much lower, problems with the implementation of the demolition of five-story buildings are quite likely “, – Dmitry Popov predicts.

The whims of developers

For developers, participation in reconstruction projects can be economically unprofitable due to the costs of developing new territories, building roads and new communications. “Each specific example should be considered separately, but from a commercial point of view, investment contracts for the reconstruction of a five-story fund still do not bring super profits to the developer, rather, it is an opportunity for a small company to enter the market and” light up “its name,” says Penny, the head of the luxury real estate department Lane Realty Alexander Ziminsky.

Nevertheless, most of the projects for the reconstruction of the five-story fund are being implemented by large developers: GK PIK, Glavmosstroy, DSK-1 and SU-155, with the participation of companies such as MFS-6 and MSM-5, which do not have their own panel production facilities. Resettlement and demolition are carried out by “Kvartal”, “Don-Stroy”, “Krost” and others..

“Renovation projects primarily attract serious investors with their own construction resources. Such volumes are only possible for fairly large companies, since we are talking about considerable investments. After all, this is not just building a house, but a project involving demolition, construction, organization of resettlement of residents,” – says Erast Zhiryakov. “For a developer, the implementation of such projects is an opportunity to” work for the budget “, that is, for” short “money that always comes on time. In addition, these are additional volumes that no one refuses now,” agrees the deputy general director of the group of companies SU-155, director of the construction department Valery Grachev.

However, according to him, there are often cases when investment contracts for developers become simply unprofitable, “for example, the location of objects is unattractive for future tenants or requires expensive installation of complex engineering.”.

Main motives

In general, for the developer, the main determining factor in calculating the cost and profitability of the project is its volume: with the increase in the occupied areas, the overall profitability of the project also grows. For this reason, developers are attracted to large-scale projects with the reconstruction of blocks of dozens of houses. “This is also explained by the fact that the costs of encumbrances for the reconstruction of a five-story fund, as a rule, amount to 50-60% of the total investment, thus the company’s profit grows in proportion to the increase in the volume of reconstruction,” adds Dmitry Popov.

Thus, today the market is most interested in investment contracts for sites in the Central Administrative District (CAD) and in areas where there is a possibility of building high-rise business class buildings. The developer’s benefit in the area ratio depends on the capabilities of the vacated site: from 1: 3 for residential areas where there are no restrictions on the number of storeys, to 1: 1 or less for the Central Administrative District, followed by the construction of luxury housing. In addition, investment contracts with a minimum share of the city are in great demand among developers, the volume of which in each of the projects is determined by regulatory documents. “For example, in some cases, for each resettled resident, the city allocated 25 m of the total area of ​​its share to the investor. In others, the implementation of the resettlement carried out by the developer covered the city’s share..

But there are also known cases when, after resettlement, the city remained owed to the developer, as a result of which the latter received building areas in other areas, “- says Erast Zhiryakov. However, now practice shows that the share of the city ranges from 30% for residential suburban areas to 50% in the CAD with the subsequent construction of luxury housing.

Resettlement problem

Usually, the resettlement of tenants is carried out by the “wave” method: first, a “starting” house is built on a free site, where the first five-story building is moved, then the resettled building is demolished and a second house is built in its place. If more five-story buildings are envisaged for demolition, it can also become a starting point, but if the reconstruction is in the final stage, it may already be a commercial building. “Before resettling tenants to a ‘starting’ house in the same area, as a rule, attempts are made to relocate to remote areas – now Kozhukhovo is actively used for such purposes. As a result, the more residents it is possible to evict further away, the more effective the project will be, how will a greater number of new areas of the resettlement area become commercial “, – Dmitry Popov notes.

However, the problem of resettlement always has an individual solution. If we are talking about projects in which the city participates, it is much easier to resettle residents, since the administrative resource allows the developer to solve this problem as efficiently as possible. However, in cases where resettlement is carried out exclusively by the developer, settlement issues have to be settled not only with residents, but also with the city. “Usually, contracts are concluded with state unitary enterprises (for example,” Mospereselenie “), that is, the city is involved in the resettlement.

Such a solution is effective provided that the tenants are resettled. The situation with homeowners is much more complicated, since administrative methods are not applicable to them, “says Erast Zhiryakov.

According to Khaya Pleshitskaya, the head of the legal sector of CJSC MIAN Real Estate Agency, residents of houses intended for demolition have the opportunity to receive not an apartment, but monetary compensation. “This practice is not very popular, however, in accordance with Article 32 of the Housing Code, the redemption price of a dwelling, the terms and other conditions of redemption are determined by an agreement with the owner of the dwelling. That is, theoretically, the amount in the agreement may even be higher than the market price of an apartment. and all additional compensations assessed.If no agreement is reached, the issue is considered in court.

But, taking into account the possible duration of the process, litigation is not profitable for the developer, therefore in most cases the parties simply agree among themselves, “Pleshitskaya sums up.

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