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Significance The completion of residential housing units reached a post-Soviet record of 110 million square metres. This strong expansion in construction activity was demand-led, stimulated by state subsidies to buyers of new homes. However, state intervention created significant distortions in the real estate market, with state subsidies on mortgages principally benefiting middle-class buyers. Impacts More affluent households will continue to move to the outskirts of large cities where new houses are being built. The explosive growth in mortgage lending boosted banking sector profits last year. A shortage of workers could also hamper continued growth in the construction sector.
A Fri, study studied this question.