Housing and communal services in Russia

Main article: Russian economy

Digitalization

Main article: Digitalization of housing and communal services

Debt for housing and communal services

Main item: Debt for housing and communal services

Utility equipment in Russia

Main article: Communal equipment in Russia

History

2023

Growth of the Russian housing and communal services market by 8.2% to 8.1 trillion rubles

The volume of the housing and communal services market in Russia reached ₽8,1 trillion in 2023, showing an increase of 8.2% compared to the previous period. The data were published in an analytical report on September 9, 2024.

According to GuideMarket, the positive dynamics is due to a set of factors, including the annual indexation of tariffs, investments in infrastructure modernization and the implementation of state programs to support the industry.

The transformation of the housing and communal services sector is characterized by the active introduction of digital technologies and automated control systems. Special attention is paid to the development of intelligent systems for accounting resources and online services for interaction with consumers.

The modernization of the communal infrastructure is accompanied by the introduction of energy-saving technologies and environmental initiatives. Industry enterprises invest in updating engineering systems and developing modern waste management methods.

There is a trend in the sector to expand the range of additional services and develop flexible tariff plans for various categories of consumers. Companies are introducing new approaches to housing management and feedback systems with the population.

The development of public-private partnership contributes to attracting investment in large infrastructure projects. The industry is demonstrating a steady course towards staff development and the introduction of modern real estate management models.

Priority areas of development are programs to reduce the carbon footprint and ensure environmental sustainability. The companies of the sector actively participate in initiatives on sustainable development and increasing the social responsibility of business.

The introduction of IoT technologies and automated resource accounting systems is aimed at optimizing operating costs and improving management efficiency. The digital transformation of the industry contributes to improving the transparency and quality of the services provided.^[1]

The regions of the Russian Federation leading in the volume of the housing and communal services market are named

The volume of the housing and communal services market in Russia in the period from 2019 to 2023 is steadily increasing. At the same time, the Central Federal District is the leading region in terms of costs. This is stated in the study of the analytical agency "GuideMarket," the results of which were published on August 28, 2024.

One of the key factors that stimulate the growth of the area under consideration is the annual increase in utility tariffs due to the need to compensate for inflation and infrastructure modernization costs. In addition, investments in the renovation and construction of new housing and communal services facilities have a significant impact, which requires large financial investments. State programs and subsidies aimed at supporting and developing housing and communal services further contribute to the expansion of the market. At the same time, the demand for utilities is increasing against the background of population growth in large cities.

At the end of 2023, the Central Federal District occupies a leading position in the housing and communal services market in Russia with a share of about 32.3%. This is due to the high level of urbanization, a large number of residents and the concentration of business activity in the capital and other large cities. In second place is the Volga Federal District with 18%: large industrial centers are located here, such as Kazan, Nizhny Novgorod, Samara and Perm, which causes a high need for utilities. The North-West Federal District closes the top three with a share of 11.5%. The main drivers of the housing and communal services market in this region are St. Petersburg and the Leningrad Region.

This is followed by the Siberian, Ural, Southern, Far Eastern and North Caucasian federal districts with an indicator of 10.2%, 9.3%, 8.2%, 7.4% and 3.2%, respectively^[2]

2022

The Russian market for housing and communal services for 4 years increased by 30%

The volume of the Russian market for housing and communal services (housing and communal services) in 2022 reached 3.71 trillion rubles, which is 10.4% more than a year earlier. Compared to 2018, the market turnover in the market grew by almost 30%, analysts at BusinesStat, whose data were published in December 2023, calculated.

According to experts, the turnover of the housing and communal services market in the Russian Federation is increasing due to an increase in tariffs for housing and communal services. Thus, the average amount of contributions for major repairs for 2018-2022 increased by 48.6%, the tariff for water disposal increased by 24.8%, for heating - by 20.6%, for cold and hot water supply - by 19.7% and 19.4%, respectively.

In addition, the rise of the market is facilitated by state programs aimed at providing citizens with affordable housing, resettlement of emergency housing stock, preferential mortgage lending. The implementation of state programs provides a gradual increase in the number and area of ​ ​ residential premises serviced by housing and communal services, the study says.

In 2021-2022 The turnover of the housing and communal services market increased by 9.7% and 10.4%, respectively, amid rising tariffs and the need to pay debts for housing and communal services that arose in 2020. Analysts note that in 2020, the growth of the turnover of the housing and communal services market in Russia slowed down to 1.3% compared to the previous period. During the quarantine period, some of the residents of Russia lost their jobs and could not pay for housing and communal services. The suspension of payments did not lead to a reduction in the volume of consumption of services. The government introduced a moratorium on the accrual and collection of penalties for debts for housing and communal services until January 1, 2021.

The market turnover is equal to the total revenue of serving enterprises from the provision of housing and communal services to the population. State subsidies for the payment of housing and communal services for certain categories of citizens are not taken into account.^[3]

The construction of heating systems has decreased by 10 times

At the end of 2022, heating networks in Russia are built 10 times less than in the early 1990s, and water supply networks are 4-5 times less, and the trend is downward.

1903

Beginning of the 20th century

Notes