Russia’s apartment status debate and market impact

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In Russian law, the word apartment may appear, yet it will not be treated as housing in the legal sense. This view emerged during an interview with Nikita Stasishin, who serves as the deputy head of the Ministry of Construction of the Russian Federation, and was reported by RIA Real Estate.

Stasishin explained that efforts are underway to classify apartments as a type of non-residential building where people actually reside. He framed the matter as a technical issue, stressing that there is no intention to equate apartments with residential housing, and that such an equality will not occur.

The discussion about the legal status of apartment buildings in Russia has stretched across many years. The State Duma had planned to examine a corresponding bill in November 2021, but the session was postponed. Industry observers have noted that granting residential status to apartments could lift their prices, with estimates suggesting a potential rise of around 30 percent. The magnitude of any increase would depend on the level of supply for apartments in specific regions.

The topic has also touched consumer behavior. Russians have been encouraged to consider real estate investments with relatively modest upfront capital, while policymakers and economists discuss how any redefinition might influence market dynamics, accessibility, and regional development. [Source: RIA Real Estate interview with Nikita Stasishin]

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