Marat Ayzatullin: ‘Sales have fallen by 40%, developers are starting to leave the market’

“Together we must get through this difficult situation”

The head of the Tatarstan Ministry of Construction opened the traditional meeting with journalists at the end of the year by outlining the situation in the industry and the real estate market. The volume of construction work in the republic increased by 8% over the year, reaching 813.6 billion rubles.

“If we compare it with 2023, then it was 708.1 billion, that is, there was significant growth. Although not everything was so simple in the construction industry this year, given the high key rate of the Central Bank,” noted Marat Ayzatullin.

Speaking about other indicators, the minister noted a shortage of builders — the average headcount of workers for January-October 2024, compared to the same period last year, fell by 7.4% and amounted to 86,000 people. At the same time, wages in the industry increased by 27.5%, to 63.480 rubles.

Tatarstan has already fulfilled its housing delivery plan, having delivered 3.2 million square meters to date, of which 2.3 million, or 17,037 houses, are in the individual housing construction line. Another 756,000 square metres, or 128 apartment buildings, are in commercial construction, where the plan has been fulfilled by 80%. The republic fulfilled its annual plan for social mortgages by 88%, having delivered 31 houses out of 56. The total area of new buildings under the program is 142,000 square metres.

By the way, by the end of the year, the volume of housing commissioning in the Republic of Tatarstan will grow to 3.45 million square metres, which will slightly exceed last year's figure (3.43 million). According to this indicator, Tatarstan is ahead of other regions in the Volga Federal District and is in fifth place in Russia, providing 3.5% of the total share in the country.

Despite these achievements, the year was extremely difficult for builders, especially in the second half, the minister said. With the cancellation of mass preferential mortgages, the real estate market in the country and Tatarstan, in particular, has slumped.

“In Russia, the drop in sales was 30-40% — these are big numbers, developers are already starting to leave the market. But our situation is stable for now, we do not see [serious problems]. We periodically meet with our developers, look at the current situation, analyse. For us, the main task is to ensure that there are no defrauded equity holders. I think we can handle this task. We will regulate, look for some approaches,” said Marat Ayzatullin.

According to him, the federal government is not sitting still either — they are proposing changes to the legislation to support the construction industry. “I think they will introduce the project soon. Our deputies are actively participating, together we must get through this difficult situation. Yes, it will not be easy, but in the end everything will be fine," the head of the Ministry of Construction of the Republic of Tatarstan is confident.

The republic is waiting for a new program for schools and kindergartens

The urban development potential of the republic has also grown significantly over the year — by 17%. As of 10 December 2024, it amounted to 4.989 million square metres or 536 permits, while a year earlier it was 4.264 million square metres and 527 permits.

The housing and communal services sector is also showing growth. The projected volume of services provided by housing and communal services organisations increased by 12% this year, to 63.6 billion rubles against 56.6 billion last year. However, a personnel shortage has emerged in this industry as well: the average headcount of employees for 6 months of this year fell by 2.4%, to 26.890 people. Although the average salary increased by 17.9%, to 49.270 rubles.

During the year, 44 republican programs, 6 national projects and 4 state programs were implemented in the republic, covering 3,696 objects for 154.8 billion rubles.

Over the year, eight schools and three educational buildings for almost 10,000 places, as well as 10 kindergartens for 2,200 places were built in Tatarstan. 236 educational facilities were repaired. Big plans for the next year, and a new tool may appear for their implementation.

“We are waiting for a new programme for the construction of schools and kindergartens. Until the federals announce it, we are waiting for it. Accordingly, after that a decision will be made on the construction of educational facilities,” Marat Ayzatullin explained.

When the new building of the Kamala Theater will open

As part of the improvement of public spaces this year, 64 parks were renovated in the republic for 2.35 billion rubles. Among them are the boulevard along Serov Street in Kazan, as well as the embankment in Almetyevsk. In total, during the period of the programs, from 2015 to 2023, 435 parks were improved in Tatarstan for 20.89 billion rubles.

Under Our Courtyard programme, 835 yards were put in order for 10 billion. Major repairs were carried out on 749 apartment buildings in 41 municipalities for a total of 8.3 billion rubles. The minister named Yelmay children's park, which already opened, as well as the new building of the Kamal Theatre, on which builders are still working, as significant construction projects of the year.

“The construction of the theatre is nearing completion. By the end of the year, the construction and installation works should be fully completed. Then we will test the facility so that in the new year we can test it together with the artists, the minister said, and later, answering the question of when we will finally see the Kamal artists on the new stage, he joked, “When I become the Minister of Culture.”

Marat Ayzatullin reminded the audience that the construction process is long and painstaking — it is not enough to simply erect the building. There is still a long process of coordinating all construction volumes and procedures ahead. Nevertheless, the facility will most likely receive a certificate of compliance with building codes before the new year, he added.