194 EUROPEAN APPLIED SCIENCESAt present a number of regional programs on housing construction envisage development of territories in new boroughs using acomprehensive approach. As a rule, the large-panel method is the first option as the main house-building system. Acute housing problem isundoubtedly the most pressing for the majority of Russian citizens. Over 3 million families are accepted on the waiting list of the HousingRegister. Up to 70% of those on the waiting list — are families with low income. Nowadays, 1.2 million Russian citizens are homeless, 6 millionlive in run-down buildings unfit for human habitation, one third of the total population resides in conditions, which are below the housingstandards. Hence these people more often suffer from health problems, less often procreate, and die early. In 2011 the total floor area ofhousing stock in Russia amounted to 3288 million square meters, of which the share of run-down and unfit for human habitation was 3%(99 million square meters). Today a Russian citizen has on average a mere 23 square meters of housing floor area to live on. To compare: inEurope this indicator ranges from 30 to 40 square meters, in the USA — to over 50 square meters 1 .Architect K. Zhukov wrote in his article «On Architecture of Large-Panel Buildings», published in the journal «Architecture in the USSR», thatmass large-panel construction of 1–2 storey houses was organized at the Beryozovsky integrated house-construction factory during the SecondWorld War. Year 1948 may be called the beginning of experimental construction, in 1952 several highly productive factories for manufacturingprefabricated reinforced concrete were put in operation, and in 1958 the mass-volume industrial large panel house building commenced 2 .Large-panel houses were built by integrated house-construction factories. The efficiency of their operation was based on combiningand implementing of sequential interlinked processes in order to create the final product — ready for use houses. Gathering offormerly independent, economically and organizationally separate companies and enterprises under the roof of integrated house-constructionfactories produced higher motivations among the personnel and considerably raised responsibility for the end results of their work and increasedthe quality of houses built.By 1988 there were over 500 integrated house-construction factories in operation, with total building capacity of about 66 million squaremeters of housing floor area per year (to compare: 62.3 million square meters of housing floor area were built in Russia in 2011). In thoseyears the search continued for better and advanced methods for organization and management of integrated house-construction factories. Forexample, a number of design & construction amalgamations for large-panel house building were created in Moscow and Leningrad. Thanks totheir efficient activities the use of concrete box units in housing construction started to progress. Extensive development of rural constructionfactories and plant-construction factories began at the same time. These factories manufactured, transported and assembled structural unitsand components for agricultural and industrial buildings. About 200 integrated house-construction factories remained in the country afterthe collapse of the Soviet Union.Along with great achievements in mass large-panel house construction came the experience that revealed a number of drawbacks, majorof which are the following:— architectural inexpressiveness and monotony of residential areas built-up with large-panel houses;— no possibility to alternate the layout of flats;— operational drawbacks, such as, higher noise level and penetration of air and moisture through joints.Currently in Russia the share of pre-fabricated large-panel house building fell on average to 13.4%, and in some regions — to 5% andbelow. In 2012, about half of 409 existing integrated house-construction factories are in business. They jointly build 10–12 million squaremeters of housing per year, while their annual building capacity is 35–40 million square meters. The potential for increase in Russian housingconstruction is 25–35 million square meters. However, only 30 of 210 working integrated house-construction factories have contemporarytechnology at their production facilities. 3In our view, the apparent abandonment of large-panel house construction, which is currently taking place, is unjustified. Consideringthe fact that Russia has already got the industrial basis for large-panel house construction, failure to reconstruct, update and further developthis technology would be a bad mistake in the process of accomplishing the national priority project “Affordable and Comfortable Housingfor Russian Citizens” and federal target program “Housing”. A sum of 2357.5 million roubles, or 62.2% of the allocated limit, was spent in2011 within this federal target program “Housing 2011–2015” 4 .Such current condition of large-panel house construction industry is attributed mainly to the fact that existing technology can no longersatisfy the demand of the real estate market. Most of integrated house-construction factories are equipped with worn out old-fashionedmachinery and thus doomed to manufacture outdated products. Therefore modernization of integrated house-building factories must be themain objective. According to Goskomstat (Russian State Committee for Statistics), the wear rate of fixed assets in construction industry in2011 was 43.3%, the share of worn out fixed assets was measured at 11.5%.Studies of contemporary international best practice in construction, in particular German, French, Italian, Czech and Chinese experience,provide grounds to conclude that the idea of prefabricated house-building should not be given up completely. In <strong>European</strong> countries outsideRussia, the majority of factories produce a rather broad diversity of types of large-panel houses varied in layout of apartments and architectureof façades. Currently manufactured precast reinforced concrete products are of superior quality in most cases, including front surfaces of panels,engineering facilities and interior finish. This is a result of high quality component materials and up-to-date equipment, used in constructionof large-panel houses, as well, as stringent quality requirements.Chart 1 represents some trends in housing construction in Russia and Germany.Chart 1. — Comparative data for Housing Construction in Russia and GermanyCountries 2000 2005 2008 2009 2011Average Floor Area of Built Apartments (m 2 )Russia 81 85 83 85 79Germany (living floor area) 108 121 119 118 119Housing Construction per 1,000 Inhabitants (million m 2 )Russia 207 304 449 419 436Germany 554 354 255 230 2331 Construction in Russia. 2012. Federal State Statistics Service. E-resource: [http://www.gks.ru]2 Zhukov K. Architecture in the USSR. № 9, 1952.3 Housing Construction/Scientific - Technical Journal, № 7, М., 2012 , pages 2–8.4 Construction in Russia. 2012. Federal State Statistics Service. E-resource: [http://www.gks.ru]
Section 4. Economics and management195Analyzing statistical data, one can easily notice that since 2008, construction of new houses in Germany has been lower than in Russia.This can partly be explained by modernization of already existing housing. Regarding this fact, it is worth mentioning the experience andpractice of reconstruction and modernization of large-panel houses in the present-day Germany.In East Germany the pre-fabricated large-panel house construction began in 1958. First large-panel houses had frameless structure withtransverse load bearing walls with inter-wall pitch of 3.6 and 2.4 meters, and primarily 3 apartments on a stairwell. In 1960 a new series ofstandardized designs was introduced, it was based on the same structural system, but with two apartments on each stairwell. In 1964 a newseries of designs was developed and adopted for mass housing construction, with increased pitch between load bearing walls up to 6 meters. In1968 the first integrated house-construction factory began its operation making 5–11‐storey large-panel houses. In 1982 economic feasibility oflarge-panel multi-storey houses was achieved by placing kitchens in the heart of apartments, setting up “second light” illumination and makingcombined WC-and-bathroom units in all apartments. Housing construction within this series took place in Berlin, Leipzig, Karl-Marx-Stadt 1 .In the early 1990‐ies, a large-scale modernization (rehabilitation) of panel houses began in the East Germany, so that they could meetthe requirements of comfort and energy efficiency. The German experience in renovation proves that multi-storey panel houses, which havesufficient safety margin, are cheaper to modernize than to demolish. The total number of objects for reconstruction in East Germany was2 million and 180 thousand apartments in pre-fabricated houses. About 75% of such houses have undergone reconstructed by now. Completeupgrading of one apartment costs approximately 25 thousand euro, including 8.5 thousand euro required to ensure energy efficiency. Theworks are funded with involvement of the owners’ own resources. For these purposes citizens are given a 25 years loan at 3% annual interest.Part of the costs was paid by the federal budged. One of the advantages of reconstruction is the possibility to do the works without movingout the tenants (residents). From the political prospective, such reconstruction will always contribute to popularity of a regional governor,because it creates affordable housing.Before the beginning of design works, a house undergoes a complete technical survey, which includes energy audit and inspection ofbuilding structures. Results of such a survey together with modernization proposal are submitted to the owner, who then has half a year fordecision making. The major segment of housing in Germany is rented out. The largest owners are municipal housing enterprises, housing andbuilding cooperatives and major landlords. As a rule, a reconstruction manager represents the owner’s interests while reconstruction. Thefollowing main works are done during modernization: replacement of roofing, heat insulation of a technical floor, insulation of façades andupdating their decorative finishing, replacement of windows and improving ventilation, basement rehabilitation and floor insulation, repair ofbalconies, upgrading of entrance halls, installation of lifts on the outside of the building (in the absence thereof), replacement of utility lines andheaters, installation of thermostats and heating meters, providing heat supply to apartments through a horizontal system, installation of waterconsumption meters in apartments, setting of a heating manifold and communal water/gas consumption meters in a basement, developmentand upgrading the adjacent territory.Landscaping is also part of modernization works.An example of such rehabilitation and modernization works is Hellersdorf, the large residential borough in East Berlin, built up withprefabricated panel houses between 1982 and 1990. 42,600 flats for 100 thousand inhabitants were built there during the mentioned period.By the end of 1990 the area produced an impression of an incomplete and abandoned construction site with inhabited houses having manyconstruction defects, such as, water leakages though roofs, cracks in joints between panels, etc.This area did not benefit from the large-scale privatization of housing during the 1990‐ies. At the same time, the new large-scale housingconstruction was discontinued due to fall in the birth rate in this period. Therefore it was necessary to get the previously built housing stock innormal condition. But such undertaking required a great preparatory work to be carried out, as follows:1. A complex analysis of the exiting housing stock condition together with legal, socioeconomic and technical evaluation of this stock(the new housing stock management had to be organized, the ownership issues had to be resolved, and boundaries for plots of land had to besettled on the basis of current legislation).2. A town planning analysis.3. A feasibility study in order to determine what should be done in the process of upgrading and how much will it cost.4. A social analysis in order to find out: who specifically lives in these houses, what is the income level of residents and their social status,and how can these residents may become involved in the process of upgrading.Since 1993, in the Hellersdorf borough of East Berlin there were works on reconstruction and modernization of panel houses. The worksresulted in changed appearance of houses to a better look, improved infrastructure of the surrounding territories, increased comfort ofapartments, decreased maintenance costs for the entire residential area. Maintenance costs for Hellersdorf dropped to 72 cents per 1 squaremeter, while the average for entire Berlin is 1 Euro 50 cents. Reconstruction and modernization of pre-fabricated panel houses providessustainable economic development of the respective borough and of the entire city. Renovation of panel houses is the most importantfactor increasing their life cycle. It is of great interest to all East <strong>European</strong> and CIS countries, since all of them have a large stock of panelhouses in their possession. The experience of regions in East Germany and Berlin in particular, deserves much careful attention and shouldbe applied in the business of construction and real estate companies in many countries, including Russia.There emerges an obvious question regarding Russia — how to make the buyers interested in the revival of panel housing? This can beachieved in the first place by modernization of existing integrated house-construction factories, and second — by upgrading the existing housingstock. For example, after reconstruction of a large-panel house-construction factory in Rostov-on-Don, their products acquired fundamentallydifferent technical characteristics of construction quality, comfort of living, energy efficiency, noise insulation etc., plus a wide selection of alltypes of flats — form small studios under 30 square meters to big multi-room apartments, and also including, sometimes, duplexes. Becauseof such improvements panel houses of the new generation become quite comparable to monolithic buildings, and are sometimes referred toas “elite housing” 2 .Expansion of the large-panel house construction industry requires revival and modernization of the existing industrial basis. The taskshould be carried out using advanced technologies allowing to manufacture a broader range of products, and thus making it possible to buildhouses of diverse layouts and architecture, which could satisfy the demands of various social groups. For this purpose there should be createda mechanical-engineering base for making automated and robotic equipment for the full production cycle of reinforced concrete structures.For such purposes it would be prudent to organize an experimental integrated house-construction factory and a design-engineering bureaufor development and testing of advanced technologies using the latest national and international experience in housing construction.1 Rozanov N. P. Large-Panel House Building. Moscow: Stroyizdat, 1982. – 224.2 Zhukov M. Modern Large-Panel House Building Can Provide the Population with Affordable Housing. Commersant (Rostov) .№ 150 (4932), 2012.