The Russian Housing Development Foundation put up for an auction the right to conclude free of charge fixed-term use agreements for a land plot in the Rostov region, belonging to the Foundation, for an economy class integrated housing development. Bidding will be held under the Dutch auction system.
As it follows from the announcement, land plot of 3,4 hectares is located in the south-west of Novocherkassk near Baklanovsky avenue. The initial price of the auction is 33 thousand rubles. rubles. per square meter of total living space. Step of the auction is set at 400 rubles. The land will be granted for a term of gratuitous use for a period of three years, starting from the time of signing of the act of acceptance-transfer. The residential area, which will be built on the site should be at least 12920 square meters.
The land in Novocherkassk is located in close proximity to Balaklanovsky Avenue, which connects the urban district to the highway “Don” and the regional capital Rostov-on-Don. The distance from the city center to the land plot is less than 5 kilometers. The area is surrounded by apartment buildings and individual housing construction.
As stipulated in the documentation, the land plot is to be used for construction of low-rise apartment blocks of exclusively economy class.
According to the press service, the Dutch auction is held at a lower price, in this case – one square meter of economy class housing. The starting price will be determined based on the regulations of the State Construction Committee of the market value of “square meter” of housing in the Rostov region.
The auction winner will receive lands of the Russian Housing Development Fund for free of charge fixed-term use. Construction of economy-class housing and its sale at auctioned price to certain categories of citizens, the list of which is determined by regulations of the Federal Government, are conditions for obtaining the land.
In July of this year President Putin signed Federal law №118 approving the regulations for the Fund’s price reduction auctions.