New policy may boost housing supply for lower income people

The Construction Ministry's draft decree requires a housing project to reserve 70% of its area for small and medium-sized apartments.

The proposed regulation is expected to dramatically boost the supply of housing for low and medium income citizens.

The Ministry of Construction is gathering ideas for a draft decree that requires a housing project to reserve at least 70% of its area for small and medium-sized apartments.

The move is expected to provide low and average-income citizens with more opportunity to buy homes.

The proposed regulation stipulates that a small apartment should be defined as measuring between 45 and 70 square metres while an average-sized apartment would cover from 70-90 square metres.

All apartments must meet the required standards for a self-contained flat.

The intended regulation also requires that real estate investors should have sufficient financial competence to meet at least 30% of the project’s total investment.