Numerous adjustments made to the economy of many countries by the global crisis do not change the relevance of investing in real estate. A simple layman, investing his savings in the construction of residential facilities, skillfully keeps his savings. In connection with the changing trends, the resale of real estate ceased to bring tangible income, which led to the emergence of completely new sources of profit for large investors. Apartment building is a popular alternative to buying real estate. The construction of these residential facilities was carried out earlier and was officially phased back in 1917.
Take a look at the past
Apartment building is an object from a separate segment of real estate, which is used by its owner as a long-term investment project. The first buildings of this type were erected in Europe at the beginning of the 17th century. It was in England, Germany and France for the first time that they began to promote the idea of providing their own housing for temporary use to third parties. In the past, there was no opportunity to make a quick sale of housing, which is why there was a tendency to build luxury mansions. The most famous architects were involved in the construction process , and the structures were located in the most picturesque places. Finished buildings were secluded in a separate type of real estate, which was considered the decoration of the world's largest cities.
What did the apartment buildings of the past look like?
The first apartment building was an apartment building, on one of the floors of which the landlord lived with his family. On the floor could be the homeowner's office, store, or warehouse. A characteristic feature of the designs was the presence of stucco decoration on the facade, beautiful statues, bas-reliefs and columns. Gilding could be present on the exterior. Decoration was present only on the part of the building that looked onto the streets. Facades directed to the inside of the courtyard were very simple in design and had no frills. Apartments that were part of apartment buildings in Moscow and in other cities had the same layout. They almost always grouped around galleries, corridors and stairwells. The building occupied almost the entire territory of the site, which was allocated for it. The only free place is the patio, which was used for short-term walks of tenants with children and for drying clothes.
How did the history of houses in the Russian Empire take shape?
The first apartment building is a construction that is absolutely not characteristic of the architecture of the past. Such a structure appeared on the territory of the largest cities of the empire only in the 17th century. It took only 50 years for the buildings to become very popular and in demand. In the past, there was a tradition: every merchant, merchant, or any other wealthy person who respects himself, must have erected at least one such structure, on the sign of which the name of its owner will be indicated. By the beginning of the revolution, at least 600 buildings of this type were located in Russia. They adorned the streets of Moscow and Odessa, Kiev and Gomel.
The development of apartment buildings based on changes in legislation
In the 19th century, as a result of significant changes in the legislation of the Russian Empire, the first floors of constructions could be rented out under the atelier, under the shop, under the shops and confectioneries. The second floor was intended for office premises. On the third floor of the structure were apartments that were rented by nobles, industrialists and merchants. Actresses and artists, retired military and students lived on the attic floors . A small room cost the tenant 15-30 rubles per month, and multi-room apartments cost from 500 to 1000 rubles. Access to rental of this category of housing was open to absolutely everyone.
The emergence of ideas
Apartment building is a topic that has been discussed quite often recently, which is directly related to the active development of the domestic real estate market. Constructions, in fact, are multi-apartment buildings in which all apartments are focused on rental. For the first time, the idea of erecting constructions of this category appeared among the statesmen of St. Petersburg, who in this way seek to permanently solve the housing problem. According to them, low-income residents of the country who do not have the opportunity to purchase their own home will not only be able to rent apartments that offer apartment buildings in the Nevsky district. They will be able to live there happily and comfortably. This idea does not belong to the category of innovation, which is quite obvious from the story presented above.
Relevance of projects in 2015
The relevance and profitability of the projects is justified by the fact that the housing stock of Russia in the 20th century has significant differences from the stock of modernity. In the past, large cities were formed from large households and mansions of the nobility, which were focused on just one family. Ordinary employees who actively migrated to large cities could neither buy nor rent housing, since the proposals were more limited to palaces of one and a half thousand squares. A tenement house is not just a solution to pressing problems with housing, it is also an answer to the demand on the market and just a highly profitable business.
Is there a demand for rental housing in Russia?
Demand for rental housing in Russia over the past few years has grown significantly. A huge number of people are looking for affordable housing. Many, trying to get profit by satisfying demand, rent rooms in their apartments or whole apartments inherited. There is also a more serious group of investors who specifically repair apartments with a view to leasing them. Such an approach provides stable earnings, and helps save money during times of economic instability. Analysts note that the profitable houses of St. Petersburg are more interested in people than offers from private owners. This is ensured by the stability of the partnership. The situation when the owner may ask to vacate the house due to his life circumstances is completely excluded. We can talk about a simple and transparent partnership scheme and confidence in the future. The apartment building (photos of such buildings are in the review) brings benefits not only to its owners, but also to the state, which gets the opportunity to legalize the real estate market.
A look at construction as a business
Today apartment buildings in Moscow cost their owners the same amount as ordinary houses, the apartments in which they plan to simply sell. During the construction of a typical house, its owner returns the funds invested in the construction within 5 years. Similarly, profits are obtained over an identical period. At the same time, the loan for the construction of the structure is repaid as quickly as possible by investing in the process of erecting buildings for future residents. As for apartment buildings, their payback is 13 years or more, which automatically leads to an increase in interest on the loan during the implementation of the interest. Ultimately, the project will provide stable passive income of a large size, but few modern entrepreneurs are ready to work for such a distant future.
How can the government help?
Due to the fact that the segment of apartment buildings in Russia is not very developed, it is considered unattractive for businessmen and investors. The government, for its part, cannot take any effective measures, since the provision of concessions or subsidies for construction, tax relaxation or preferential prices for land does not ultimately solve the state problem. The rental rate, even at lower construction costs, remains the same. Despite an active discussion at the government level on this topic, virtually no action has been taken. An alternative for business with a parallel solution of the housing problem at the state level will become available only when the market for this real estate segment expands and, due to the abundance of supply, becomes more accessible for low-income citizens. As an option, a tenement house, reviews of the level of accommodation in which they are only encouraged, can be fully funded from the budget, but funds have not been provided for these projects.
When will the turn of tenement houses come?
The structure of market relations says that the proposal will be formed until the demand itself is completely exhausted. To begin with, the active development of the Russian real estate market can only be observed over the past ten years. At a time when rental housing occupies a worthy segment in the markets of developed countries, in Russia it is only beginning to appear in the form of organized buildings. Today, developers are inclined towards the construction of ordinary housing, which pays off faster and brings income in the coming years. As long as there is demand, this trend will not change. A tenement house, the reviews of employees about which draw attention to the positive aspects of the project, will be in demand when real estate buyers exhaust themselves, and the market will be dominated by the demand from the poor for affordable housing. At the same time, interest in buying apartments will fall, which will form fierce competition among developers in this segment and increase risks. This will be a turning point when developers begin to give preference to such projects as, say, apartment buildings in the Nevsky district.
Basic principles of construction in 2015
The basic principles of the construction and development of housing for rental in Moscow were to appear in the Master Plan of the city, the approval of which was planned for 2015. The apartment building, the reviews of employees about which always sound in a positive way, can become a highly profitable project in the future. In the future, it is planned to change the specifics of construction. The following issues were considered and rejected during the discussion of the problem: reduction of lighting standards, changes in sanitary and epidemiological standards, safety standards. In accordance with preliminary plans, it is in the reorganized industrial zones that the first apartment building will appear. Pushkino will not become its location, but the territory of New Moscow, Zelenograd and the Northern Administrative District - it is quite possible. As for the developers themselves, they are not very pleased with the government’s desire to develop a rental housing market. In their opinion, the apartment building (Pushkino) at this point in time does not seem promising in terms of profit. This is due not only to high interest rates on loans, but also relates to the long payback period of the project. An important role is played by the presence of more profitable segments in the Russian real estate market.