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Housing construction in Arctic grows by 40% due to mortgage incentives

According to Russia's Minister for Development of the Far East and Arctic Alexey Chekunov, the growing construction industry is important in light of the large-scale work to start implementation of master plans to develop cities in the Russian Arctic, to develop Arctic backbone settlements

MOSCOW, February 26. /TASS/. The Far Eastern and Arctic Mortgage Program results in increased housing construction in the Arctic, press service of the Corporation for the Development of the Far East and the Arctic said.

"Affordable housing is a key factor influencing the development of the Russian Arctic Zone and higher quality of life of people living in the North," the press service quoted Russia's Minister for Development of the Far East and Arctic Alexey Chekunov as saying. "The Far Eastern and Arctic Mortgage Program makes a significant contribution to this. Housing becomes affordable for young families and privileged categories of citizens, and boosts the construction industry. Over the program's full year, the housing under construction in the Russian Arctic has increased by 40%."

The growing construction industry is important in light of the large-scale work to start implementation of master plans to develop cities in the Russian Arctic, to develop Arctic backbone settlements, to introduce new and improve existing social support mechanisms for people living in the Far North, the minister added.

For example, in the Arkhangelsk Region, housing construction has demonstrated a record growth by 32%, where 667,000 square meters or 15,000 apartments are being built. In the Yamalo-Nenets Autonomous Region, the growth is by 40% - 278,000 square meters or 5,000 apartments. In the Murmansk Region, the growth amounted to 1,060%, where 58,000 square meters of housing or 1,000 apartments are being built. Noteworthy, in January 2024, only one house for 90 apartments was under construction in the Murmansk Region.

According to the Corporation, 11,700 young families have received preferential loans under the Far Eastern and Arctic Mortgage Program. The Arkhangelsk, Krasnoyarsk, Murmansk and Yamalo-Nenets Regions are leaders in terms of the pace to implement the program.

Russia launched the preferential housing loan program in the Arctic on November 1, 2023. Residents of the Murmansk, Nenets, Yamalo-Nenets, Chukotka Regions, as well as of the northern municipalities in the Arkhangelsk, Krasnoyarsk, Yakutia, Karelia and Komi Regions may apply for 2% p.a. mortgage loans.

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