Support The Moscow Times!

Chinese Builders Offer to Supply Russia With Affordable Housing

A man rows a boat on a river in front of new properties in Taiyuan, Shanxi province, China.

Chinese construction companies are ready to help Russia boost its stock of affordable housing if domestic builders cannot rise to the task, Deputy Housing Minister Alexander Plutnik said after a meeting of a new Russia-China investment commission.

Russia aims to build 25 million square meters of affordable housing by 2018 under the "Housing for Russian Families" program.

"We are banking on Russian builders showing interest and initiative to go out and get long-term orders … but if they don't, there are Chinese builders that are ready to come," Plutnik was quoted as saying by news agency TASS following the meeting last week.

Plutnik said the Chinese construction firms had committed to selling the housing at under 30,000 rubles ($800) per square meter. At that price, the Chinese investors would still achieve margins of 8 to 10 percent, he added.

The average 2-bedroom apartment in Russia is about 55 square meters.

Although Chinese companies build 1.5 billion square meters of residential housing in China and abroad each year, they have only minimal presence in Russia, TASS said.

According to the Vzglyad newspaper, a square meter of new residential real estate in Moscow costs on average 188,000 rubles ($5,000). Outside the capital, average costs range from 40,000 to 70,000 rubles ($1,000 to $1,850).

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more