Eco is not logical: developers in the South of Russia neglect "green" technologies

In Crimea, only 3% of apartment buildings under construction meet "green" technologies, which is five times lower than the national figures, analysts told Izvestia. And in Kuban, there are 2% of such facilities at all. There are no requirements that would make the use of such technologies mandatory, so developers are focusing on cheaper and faster options. The favorable climate, stable demand and tourist attractiveness have created the illusion among local developers that they can do without investing in technology, experts said. The State Duma believes that the environmental friendliness of the industry should be developed through incentives for developers, and not through pressure on the market.

Where "green" technologies are ignored

The majority of development companies operating in the Russian Black Sea region neglect "green" technologies, experts of the Urban Award told Izvestia. So, in Crimea, only 3% of apartment buildings under construction meet the provisions of the relevant GOST, in Kuban — 2%. Despite the fact that the average figure in Russia is about 15%, and in some regions it is much higher. For example, there are 51% of such projects in the Penza Region, 41% in the Arkhangelsk Region, 40% in Moscow, and 37% in the Kirov Region.

The "green" GOST for the construction of residential buildings was adopted in 2022, the press service of the GC "Exactly" reminded. There are 81 criteria in the document. To obtain a certificate, an object must meet at least 16 of them. Among the most common practices are the use of environmentally friendly materials, waste minimization, the introduction of energy—efficient technologies, the creation of recreational areas and the development of infrastructure for environmentally friendly transport.

Currently, such certification remains voluntary. Developers have no obligation to implement "green" standards in the construction of residential complexes.

—Exceptionally favorable climatic conditions, stable external demand and tourist attractiveness have created the illusion among Crimean developers that they can do without investing in technology," said Olga Khasanova, head of the Urban Award. — This approach is clearly wrong.

She recalled that the introduction of eco-standards improves management efficiency. This is especially important for Crimea, which periodically faces shortages of electricity and water.

The situation in the south of Russia is related to the peculiarities of the regional market, said Vladimir Kravchenko, Vice President of Marketing at Development-Yug Corporation.

"There is a high demand for affordable housing and fast project deadlines, so developers focus on the basic characteristics of facilities and the cost per square meter," he said.

"Green" construction is about the quality of life and the economics of home operation, said Elena Goryacheva, commercial director of the Evolution development company.

— The use of eco—technologies in the construction of residential facilities allows to increase the energy efficiency of the building, reduce resource consumption, provide good natural lighting and high-quality ventilation in the apartment, - she explained. — For a resident, living in such a project means reducing utility costs, having a comfortable living environment and a more modern level of housing.

Why don't they build eco-friendly buildings in the south

Developers and private developers in the south of Russia always strive for a cheaper and faster option, confirmed Olga Ivanova, CEO of BN Group. In addition, eco—friendly construction in Russia is a trend that appeared not so long ago.

"Historically, the south of Russia is a zone of consistently high demand due to internal migration and tourism," she noted. — In conditions when square meters are quickly sold out at the excavation stage, many local developers simply do not have the financial motivation to complicate the project and invest in innovative materials. They follow the path of least resistance, massively erecting houses from cheap concrete and gas block.

Currently, there is a great demand for housing on the peninsula as an investment asset or resort property, where the main motivation for choosing is location, price per square meter, service and projected income, said Elena Firsova, Sales Director of Razvitie Group.

In unfinished feelings: every seventh meter of housing among market leaders is rented late

Why is one of the largest developers already missing deadlines for a third of projects and how are other players doing?

— As a result, "green technologies" are fading into the background, — she pointed out.

Yuri Tsuker, Head of development projects at Kvartal Group, noted that many companies are implementing individual solutions that comply with the principles of "green" construction, but without passing formal certification.

"Interest in energy—efficient projects is gradually growing," he said. — With the advent of systemic support measures, "green" technologies can become a full-fledged competitive advantage for developers.

The low proportion of eco-friendly projects in the south is largely due to economic reasons, said Konstantin Kokushkin, chief architect and director of the architectural design company Uralsibproekt.

"If we implement energy—efficient solutions, install heat recovery systems, high—quality insulation and use only environmentally friendly materials, the cost of the project will increase by 15-30%," he said.

At the same time, the payback period for such investments is quite long, so not all developers are ready to massively implement such solutions in the affordable housing segment, Vladimir Kravchenko added.

The exception is premium projects where a wealthy audience is willing to pay for a healthy environment.

"Another factor that hinders development is that green standardization in Russia is voluntary,— Konstantin Kokushkin confirmed. — There are no tax incentives, differentiation of mortgage rates or strict requirements from regulators that would encourage developers to massively switch to environmentally friendly technologies.

But the transition to such standards is a logical stage in the evolution of high—quality development, BMS Group Development noted.

"The introduction of eco—technologies will not only reduce the load on urban networks, but also significantly reduce operating costs for future residents," the company added.

How to change the situation

The south of Russia, in particular, Crimea, Kuban and the Rostov region, are territories with high construction rates and cheap labor, where developers save on everything, including energy efficiency and ecology, confirmed Vladimir Koshelev, First Deputy Chairman of the State Duma Committee on Construction and Housing and Communal Services.

— The main reasons are the lack of demand from buyers — people choose a low price rather than a "green" standard, — he said. — Without the introduction of mandatory requirements, the share of "green" construction in the south will remain within 2-5%.

The low share of "green" new buildings in the south of Russia is primarily a signal that the market does not yet see any clear economic benefits in such technologies, added Alexander Yakubovsky, a member of the State Duma Committee on Construction and Housing and Communal Services.

— Therefore, it would be wrong to go only by tightening, — the parliamentarian believes. — We need eco-friendly, energy-efficient and comfortable homes, especially in the south, where there is a high load on the energy system, there are issues of water conservation, landscaping and the quality of the urban environment. But it is necessary to develop this area through incentives, not through pressure on the market.

We can talk about preferential financial instruments for such projects, reducing individual payments when connecting to infrastructure, preferences when providing land, and for citizens about more attractive mortgage conditions when buying housing built according to "green" standards.

Also, according to Vladimir Koshelev, it would be possible to exempt developers in the south from property tax for 3-5 years for houses with a high energy efficiency class.

"This encourages real investments in technology," he said. — It is possible to prohibit the commissioning of apartment buildings without communal metering devices for heat, water and electricity. Now it is often ignored at the acceptance stage.

On July 1, 2026, the new "green" GOST, which is already more stringent, will come into force. It provides 58 criteria, of which 35 will be mandatory. Among the key requirements are a high class of energy efficiency, the creation of a barrier—free environment, landscaping and improved noise insulation.