The market for new buildings offers a wide range of real estate objects, from which the buyer can choose the option that suits him, focusing on financial opportunities and other construction characteristics. A new trend is the integrated development of the territory. This development model is considered to be the most efficient, cost-effective and justified in the face of land scarcity and congestion in the utility networks of megacities. Since this term is relatively new, it causes great interest from potential home buyers. Today we will talk about the integrated development and development of territories, as well as discuss the prospects for this category of housing construction.
Decipher the abbreviation KOT
It is worth keeping in mind when we talk about integrated development of a territory - this is the definition that is included in a number of concepts that are part of the system of development of territories. We will only slightly touch on this issue in this article, because most of all we are still interested in the abbreviation KOT.
So, integrated development of territories is land development projects, implying large-scale construction of residential complexes with a total area of at least one hundred thousand squares. Typically, such a complex includes several apartment buildings, united by a single architectural plan and design. They are also in a similar price category. Experts say that most often the integrated development of territories is economy and comfort class housing, designed for the mass buyer with an average level of income.
It is worth noting that this development model includes all the associated infrastructure, which is being built by the construction organization. In most cases, the result is large microdistricts located on the outskirts of densely populated cities and even having their own communal networks.
A bit of history
For the first time, they started talking about CAT about ten years ago. Then the government of the Russian Federation issued a document stating some of the requirements for integrated development projects. First of all, the obligation of the developer to commission infrastructure facilities, including social facilities and engineering networks, was indicated. CAT also involves the construction of road interchanges, and budgetary funds should not be used in such activities. All costs fall on the shoulders of the developer and investors, whom he can attract to the project.
It is interesting that today no more than ten projects have been able to fall into the category of integrated development of territories for housing purposes. Many of the applicants did not achieve compliance with all the conditions presented, and today they are only planning to begin the work on CT.
It is worth noting that back in Soviet times, the principle of integrated development was very actively used. This was especially true in the thirties of the last century. Then whole wastelands, and sometimes cities, were built in wastelands. However, the goals pursued then and now vary significantly. In the Soviet Union, the main task was the construction of more square meters. Therefore, whole microdistricts turned out to be single-faced and gray. The modern approach is precisely based on the qualitative development of space. Many developers claim that they sell not so much apartments as a certain lifestyle. And for this, the buyer is just ready to pay almost any money.
Reasons for the popularity of integrated construction
Land for integrated development of territories is now in great demand, and this is no wonder. Indeed, every year in cities there is less and less free land that could be used as a place for new buildings. If earlier in the megalopolises it was possible to build several houses almost in the center and connect them to the existing city communications, now it is already impossible to do this. Therefore, developers have to consider the territory on the outskirts and develop interesting concepts for their new buildings. As a result, the buyer receives an unusual project with a developed infrastructure and many advantages.
Do not lose sight of the cost of construction. As a rule, the larger the project the developer implements, the cheaper it costs him. Therefore, even taking into account the need to equip all territories adjacent to new buildings, he receives a substantial profit. In addition, it has the opportunity to interest the buyer in all kinds of discounts, promotions, reducing the originally declared cost of housing by ten to thirty percent. Such an approach cannot fail to bribe the future owners of apartments.
Most buyers who are fortunate enough to become homeowners in such projects, with great enthusiasm tell friends and acquaintances about them, which fuels interest in CAT. First of all, they are bribed by the modern equipment of housing complexes. Usually they include video surveillance, sports and playgrounds, carefully thought-out park areas and crossings through the roadway. The buildings themselves also look stylish and modern. Sometimes a district that was part of integrated land development resembles a small piece of Europe with its beauty and unusual design.
The benefits of CAT for cities and municipalities
Here, the benefits to local authorities are also obvious. They are not investors when it comes to utilities or infrastructure. Such moments are always stipulated in the agreement on the integrated development of the territory, so the city just needs to monitor the progress of construction and then take the finished objects to balance.
Now, more than once there has been talk of collective development of territories by several developers. In this case, they may well in the future be the management company that manages the boiler houses, electric networks and other engineering facilities built and put into operation by them. However, to date, the legislative framework for such a project does not exist. However, this does not mean that it is not necessary or that it will not appear soon.
Cons of CAT
Despite the fact that we have already listed many obvious advantages of integrated construction, it also has disadvantages, which buyers themselves often forget. First of all, this is the duration of the project. Since the developer cannot build the entire microdistrict at the same time, he puts the houses into operation in several stages. When it comes to large-scale projects, it can be buildings not only of the second, but of the third and even fourth stage. This nuance must be taken into account when purchasing an apartment in a similar complex.
Also, some experts attribute the construction of infrastructure facilities on the residual principle to the disadvantages of CAT. Usually, buyers get everything they need for a comfortable stay only after the last house is commissioned. And it may take five years after the first residents have settled. Therefore, today a law is being worked out, which will oblige developers to erect the district infrastructure in parallel with houses.
Integrated land development activities: general description
We already mentioned in the previous sections of the article that the integrated and sustainable development of territories has four forms, and the CT is one of them. If you do not go into details, then they can be represented in the following form:
- development of already built-up territories;
- CAT;
- integrated land development projects initiated by land owners;
- integrated land development projects initiated by the municipality.
It should be borne in mind that each of these forms involves painstaking work on the development of documentation, designing of future facilities and in the future ensuring their vital functions.
Land for complex development: some features
In recent years, a mechanism has been developed to provide sites for CAT. Usually the territories are put up for general auction, but before that, the documents for them are carefully checked, because the rights of third parties should not extend to the site. Any legal entity can take part in tenders, however, after victory it is exempted from the need for public hearings on land surveying or the submission of project documentation. The developers themselves consider this option rather convenient and cost-effective.
It is worth considering that previously construction companies could simply rent land and hold them for a certain time. Sometimes they entered into subcontracts, and the land acquired for the construction of a parking lot, for example, could go into residential development. However, today the situation has fundamentally changed, and the integrated development of territories in regions and regions is a narrowly focused activity. The plot allocated for such development will no longer be able to be used in any other way.
Lease of land plots under CAT
If the developer plans to implement KOT, then in any case he needs to win the auction. Without this, he will not have the right to conclude a lease for the integrated development of territories. This rule is enshrined in law.
However, many developers are interested in another point. They want to know whether lease rights can be assigned to outside organizations. Under this wording, many understand the possibility of selling their rights. There can be no consensus. In fact, the law does not prohibit this, but it is formulated in such a way that it is practically impossible to make such a procedure.
After all, it is possible to conclude an agreement on CTOs only by winning the auction, which means that the organization must fully fulfill its obligations indicated in the papers. In practice, developers are already faced with a large number of different situations, which are quite difficult to resolve with the existing legal framework. Therefore, many are in favor of adopting new laws, taking into account all possible situations for leasing land under the CT.
Integrated Territory Development Agreement
This document is considered crucial when we talk about such projects. For its signing, even a special legislative framework was developed, which takes into account all its nuances.
We will give only some of the points reflected in it:
- the developer is obliged to prepare all the design documentation for the construction site, which not only includes the layout of the site, but also all future infrastructure facilities are marked;
- the right to sign the contract exists only with the representative of state structures and the legal entity that has won the tender;
- more often, the agreement reflects the need to transfer all engineering networks to the city balance within the time limits set by the agreement;
- the validity period of the document and the like.
In general, we can say that among all the nuances associated with the CTO, the issues of concluding contracts have been worked out in the best way.
Problems of integrated land development
I would like to say that, despite the great interest in such developments, experts note a number of problems of these projects that impede their implementation.
First of all, this is the lack of a legislative framework. We have already mentioned this more than once.
It is also necessary to think over and help at the state level, which should be expressed in attracting investors to such projects. After all, if we take into account that often construction also includes road construction, then it is easy to imagine how expensive it costs the developer. Some are simply not able to pull such large-scale projects, although interest in them is quite high.
Often, the problem of CAT is the inability of several developers to agree with each other. When creating a consolidation, they would not only receive a combination of their efforts, but would also be able to realize a better project created in a single style.
A few words instead of a conclusion
Of course, the system of integrated development of territories has not yet been developed and will be improved over several decades. However, the future of construction is still behind these large-scale and promising projects.