COVID-19: Implications for the Residential Real Estate Market in Russian Federation

Abstract

The article is devoted to the problem of development of the construction market of residential real estate in Russia in the conditions of the crisis caused by the COVID-19 pandemic. The global coronavirus outbreak provoked one of the deepest crises since the Great Depression. Sanitary force majeure caused by COVID-19 caused not only recession of the global economy, but also of national economic systems [1]. The pandemic and related restrictive measures have also affected many areas of the domestic economy, and the real estate market was no exception. To understand how soon the development sector will be able to adapt to the new realities, it is necessary to give a forecast of the main trends that will be observed in the construction sector of Russia and specifically in the housing construction sector, as well as in related areas of the country's economy.The main results of the study include: highlighting the characteristics of the housing construction sector that have emerged on the eve of the COVID-19 pandemic crisis, under conditions of a shock period of income recovery and the outlines of possible directions of housing construction development in the near future. As a result of the study, the following conclusions were drawn: the protection of one of the systems for the reproduction of "human capital" in the face of the "pandemic effect" should be guaranteed by a housing support programme, financial assistance for specific construction projects with the transfer of a share of constructed housing to the State as security for its repayment obligations.