Moscow's revenues from payments for changing the type of permitted use of land have doubled. In 2022, the owners of 182 land plots in the capital changed the type of their permitted use (VRI) in order to build residential buildings and infrastructure facilities on them. This was stated by the Deputy Mayor of Moscow on economic policy and property and land relations Vladimir Efimov, the press service of the Complex of Economic Policy and Property and Land Relations of the Government of Moscow reported.
The type of permitted use determines what can be built on the land. Investors change it when they plan to build facilities other than the current VRI. For this, they pay a fee to the city budget.
"The funds received from investors for changing the type of permitted use of land plots compensate for the city's costs of providing social, transport and engineering infrastructure to the built-up areas. The growth of such revenues indicates high investment activity in Moscow. In 2022, the budget received over 18 billion rubles of such payments, which is twice as much as in 2021," said V.Efimov, quoted in the message.
The amount of the fee for changing the type of permitted use of the site depends on the cadastral value of the land and the parameters of future construction. At the same time, the city provides additional support to developers: they have the right to deposit funds at a time or use installments. The last option is chosen by the vast majority of investors.
"If the owners of the land change the type of its permitted use for the construction of facilities where new jobs will appear later, they will not be charged. 32 investors took advantage of such a benefit in 2022, which saved about 7.7 billion rubles," said the Minister of the Moscow Government, head of the City Property Department Maxim Gaman, also quoted in the message.