The new law will undermine the market for suburban property

14.09.2010 10:48
Articles about real estate | The new law will undermine the market for suburban property Authority may prohibit the construction of suburban houses on agricultural land outside the boundaries of settlements. Russian Regional Development Ministry has prepared a bill according to which land will be divided into three types: cottages, gardens and garden. At the suburban areas, as stated in the document "may be placed an individual dwelling, and are not intended to stay farm buildings and structures."

The problem is that these sites are required to "stay within the boundaries of human settlements" and not on agricultural land. Violation of these restrictions implies the prohibition of legal connection to the communications, the official registration and as a consequence of "registration" in this house. And on the horticultural sector is allowed to build only "buildings and structures not intended for habitation." In other words, a country house construction outside settlements will be outside the law. And with cheap distant villas potential vacationers and developers can say goodbye.

Related article: Country House - slippery dream Ukrainians

Interviewees "RSF" developers to force the devastating impact on the business initiative of the Ministry of Regions compared with 214-FZ, blew share building blocks of flats. As explained, "RSF" Artem Gorlyub, Commercial Director of the "LOGIS - Residential Real Estate, now the majority of cottage settlements are under construction or are located on agricultural lands with the permitted use under the kind of country house construction. "Obviously, they are outside of existing settlements and not adjacent to them (which would further extend the area of settlement to include the town) - he says.

- Consequently, the ban on construction would make it impossible to implement many existing and planned villa communities. "

Law-abiding is the developer or to build settlements on land settlements or to change the category of land. The task is very difficult.

"Due to the fact that the cost of agricultural land below the cost of land settlements, and also considering the fact that the volume of supply of agricultural land exceeds the amount of supply of land settlements in the market of Moscow region more than 3 times, developers often acquire agricultural land and change the permitted use at the Dacha construction. "This measure also allows land owners to save substantially on the Land Tax Act in preparation for the implementation of the investment - explains Anastasia Zalutskaya, project manager of the Department of structuring and evaluation of development projects consulting group," NEO Centre ".

- The bill does not provide for the allocation of land for suburban building on agricultural lands, which would increase the time and costs for projects on construction of cottage settlements, since the change of category of land - more expensive and lengthy process than to change the permitted use. Given the limits turnover of agricultural land, some developers are faced with the fact that the land acquired for the construction of a cottage settlement, can not be transferred from selhozkategorii into the category of land settlements.

The cost of land for construction of cottage settlements with the duly executed documents, obviously, will increase due to the adoption of the law. And the cost of real estate developers for the construction of settlements to grow, resulting in rise and prices of houses or land plots with a row. "

In the first place, according to Gregory Altukhov, Presidential Adviser CSF Leader, innovations will affect companies operating in the segment of economy class, since the construction in this segment is on agricultural land with the possibility of using a country house construction. "It is clear that the bill will affect the rising cost of land situated in the settlements, while the land assets of many large real estate companies, as well as individuals will be impaired," - he said.

Devalued agricultural land. This is obvious for Artem Gorlyuba. "The bill puts registration of ownership of the residential structure, located on the land for farming purposes, into question. Accordingly, could no longer be where you want to organize a gated development, - he explains. - A huge amount of land for farming purposes would lose its value.

Keep it becomes meaningless, since to build on its residential buildings were not. Natural desire of the owners will get rid of it. After all, any asset in the long run should bring a positive cash flow, rather than use the land only generates negative flow and the prospect of one - of agricultural production. "

But a significant rise in areas where construction is possible, would, according to Artyom Gorlyuba, prices for town houses in all segments, even in those homes that were originally built on the land for private habitation. However, if a summer visitor to your site just a rest, and do not regard it as an asset, for it will change nothing. "Build the garden of country house can still be true, it will be the economic structure, - calms Elena Poleonova, a partner at the right bureau Olevinsky, Buyukyan and partners." - If you're not going to register it, then changes in the law you not be affected. Getting permission to build such a house does not need. "

Sees no big problem for gardeners and Sergey Amendment lawyer of Penny Lane Realty. He recalled that before the Constitutional Court ruling, which came to light in April 2008, registered place of residence in country houses was impossible. And nothing terrible happened.

With "real" plots, according to Helen Poleonovoy be harder. "To build on the suburban area of residential homes will need to obtain permission. If the same house on a garden site, which is located within the boundaries of the settlement (this is key), you will have time to build, or at least start to build up to the entry into force of amendments, permission construction will not require you, your land will be recognized as the summer holidays, and you can sign up in the house "- said the expert.

Under the bill, until January 1, 2015 issuance of a building permit is not required in respect of individual dwellings, construction of which commenced prior to the enactment of this Act. That is the foundation necessary to have time to put up to January 1, 2015.

As part of the agricultural lands are two other kinds of land - garden and garden plot. "If a garden plot for the changes seen minimal, with respect to changes in the garden, on the contrary, substantial, - said Artyom Gorlyub.

- The fact that the existing wording of the legislation on gardening, horticulture and suburban non-profit associations of citizens established the possibility of construction of residential buildings on the garden site without registration in such a structure. The new edition also does not suggest such a possibility. This causes the most concern, since the bulk of land available specifically for gardening. "

It turns out that the initiative of Ministry of Regional Development and hurts business, and consumer. Who and why is it necessary? Gregory Altukhov sees the positive side of the bill: there will be chaotic construction, simplify and streamline the turnover of land, settlements will develop due to development adjacent to his territories.

Artem Gorlyub notes that the initiative is aimed at regulating the relations arising from the construction on the land made available for gardening, horticulture and maintenance of cottage industry. But in the eyes of Constantine Astafieva, partner of law firm "Korelsky, Ishchuk, Astafyev & Partners, an initiative of the Ministry of Regions is absolutely pointless and destructive.

"The adoption of this law will lead to a tightening of control over the country construction officials that give bureaucrats a new corruption opportunities - he said. - It is obvious that unless a potential summer resident has a sufficiently large choice of where to buy land and build a house, after the adoption of the amendments this choice is greatly reduced, and a building permit, where necessary, will be more expensive. What is the economic effect of such a "rulemaking" to me, for example, is not well understood. "
Content tags: Residential Real Estate
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