ЮГ Times. Not long ago, nobody was controlling residential construction in the municipalities of the Krasnodar region. Currently, the situation has started to change for the better.

A significant rise in prices for building materials and utilities caused by inflation, crisis and appetites of the natural monopolists is a weak point of the national construction industry. Our expert Vladimir Nitsun, head of the Department for Construction of the Krasnodar region, explains whether there are tools that let freeze the prices or at least suspend their growth.

“For a long time, we have lived in market conditions, and the very idea of freezing the prices contradicts market principles.

“The most challenging problem Krasnodar is facing currently is a catastrophic lack of social infrastructure: kindergartens, schools and playgrounds.

“Possible solution of the problem becomes aggravated by the fact that the construction of such objects falls under the competence of the municipal authorities. The situation in Krasnodar is the result of the lack of town planning documentation and respective administrative regulations.

“Over the past 10 – 15 years, we have seen active housing construction in Krasnodar, but the municipality had been neglecting the need to allocate land for the schools and kindergartens. Now the situation is getting better: the developers are forced to allocate land for social infrastructure.

“I do not trust those low prices for flats some companies are offering – 27,000 to 32,000 per square metre. Every building has an estimate document of its own that consists of 12 chapters. If the price is significantly lower than the average in the region which is about 36,000 rubles, it means that the constructing company has failed to do something they should have done. Or – they have not included some utilities, or landscaping, or what they are selling is just bare walls, or they spared on the height of the ceilings.

“Today the regional authorities do their utmost to make the construction industry as transparent and understandable as possible.”

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