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21 April 2021, 10:58

Plans to involve private investors in building rental homes in Belarus

An archive photo
An archive photo

MINSK, 21 April (BelTA) –The participation of private investors will allow building more rental homes in Belarus, BelTA learned from the press service of the Architecture and Construction Ministry.

Work is underway to ramp up the construction of rental housing using various sources of financing and to involve private developers. “The work is taking place on two fronts. The first one is using idle rental housing of the state housing stock as well as private housing of individuals who have vacant apartments for rent at a market price. The second one is increasing the volume of rental housing construction by creating appropriate economic conditions and encouraging private investors to undertake such construction projects. Rented housing will be provided primarily to people on the housing list. These people will also be given subsidies that will cover part of rent payments,” the press service explained.

According to the ministry, in order to encourage private developers to build rental housing, they are to be given two land plots without an auction to build rental housing and a residential building on commercial terms. Land plots must be transferred without encumbrances, that is, without buildings slated for demolition. The construction of engineering networks for the rental house is to be financed by the government. The government will cover 50% of the costs of creating engineering networks for the regular house. “Tax incentives might be provided, namely, exemption from income tax of that part of the gross profit that will be used to build or purchase rental housing. Another proposal under discussion is providing loans with a lower interest rate if the bigger part of expenses to build such homes is undertaken by the developer,” the ministry said.

The Architecture and Construction Ministry added that all these proposals will still be discussed, their adoption will depend on the positions of all interested parties.

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