City Hall Compensates Owners of Seized Land

Since the beginning of 2025, Moscow authorities have paid 2.6 billion rubles in compensation to owners of land seized for future comprehensive territory development projects and under the housing renovation program. Industrial zones are currently being actively reorganized in the capital, while modern buildings are replacing Khrushchev-era apartments, which experts note requires a large volume of available land. According to Moscow’s urban planning complex, over 30 million square meters of real estate are currently under construction on these sites.

In 2025, the total amount of compensation paid to owners of seized property in Moscow reached 2.6 billion rubles, which is almost five times more than the previous year, according to calculations by Rusprofile service.

Analysts note that a total of 110,100 square meters of real estate were seized in the capital during the current year, compared to 2,900 square meters the previous year.

This growth is driven by the active implementation of projects in Moscow under the comprehensive territory development program organized by the city hall. Part of the increase in compensation volume was provided by the renovation program.

Moscow’s urban planning complex stated that new construction, including road networks, metro systems, housing, and social facilities, requires reorganization of existing territories, and in such cases, plots and properties of various functional purposes are subject to seizure.

The comprehensive territory development mechanism, which involves territory renovation through cooperation between authorities and developers, was launched across Russia in 2020, but such projects are being implemented most actively in Moscow.

As of early November 2025, 142 comprehensive territory development projects are underway in the city, where over 30 million square meters of real estate are being built on approximately 1,500 hectares.

However, this is not the limit. By the end of 2026, the total area where comprehensive territory development projects are being implemented in Moscow may exceed 5,500 hectares, according to forecasts.

Currently, this program covers not only industrial zones but also practically any inefficiently used territories. Typically, production and warehouse facilities are seized and later replaced with modern business infrastructure.

The procedure for property seizure and compensation payments is regulated by Article 56.12 of the Russian Land Code and Moscow Government Decree 941-PP dated December 23, 2015. The amount of compensation is determined based on the results of market value assessment, and the compensation also includes losses caused to owners by the seizure, as emphasized by the capital’s urban planning complex.

The city’s chief architect stated in September 2023: “Building a new city requires colossal investments.”

Currently, city authorities have significantly changed their approach to assessing the value of seized property: it has become more objective and takes market conditions into account. This, according to experts, pushes up the amounts paid to property owners.

Attention is drawn to the fact that there are frequent cases where compensation assessment is performed not by the city but by the developer. In such cases, the compensation assessment is often underestimated. However, if the parties cannot agree on the compensation amount, the city goes to court to establish the payment amount and seize the property, as clarified by the urban planning complex. In the future, the total area of seized property will gradually decrease until the housing market recovers from the crisis.

Khrushchev-era apartments

Khrushchev-era apartments, known as *Khrushchyovka*, are a type of low-cost, concrete-panel or brick apartment building constructed in the Soviet Union during the early 1960s. They were built under Nikita Khrushchev’s administration to quickly solve the severe housing shortage and move people from communal apartments into small, self-contained units. While they provided a significant social benefit at the time, these apartments are now known for their cramped layouts, poor sound insulation, and limited amenities.

Moscow’s urban planning complex

Moscow’s urban planning complex is a testament to its long history as a political and cultural center, evolving from a medieval fortress to a modern metropolis. Its iconic radial-circular layout, established in the 16th century and expanded over time, radiates from the Kremlin and Red Square. Major transformations, including the Stalinist “Seven Sisters” skyscrapers and contemporary developments in the Moscow City business district, reflect the city’s changing architectural ambitions and political eras.

Russian Land Code

The Russian Land Code is a comprehensive federal law that governs land relations and the use of land resources in the Russian Federation. First adopted in 2001, it was a landmark piece of legislation that established a modern system of private land ownership, a significant shift from the previous Soviet era where all land was state-owned. The code regulates land categorization, ownership rights, transactions, and the state’s management of the land fund.

Moscow Government Decree 941-PP

This is not a place or cultural site, but a legal document. Moscow Government Decree 941-PP is a regulation issued by the Moscow city administration concerning urban development and construction norms. It is part of the legal framework governing the city’s planning and architectural policies.

housing renovation program

A housing renovation program is a government or community-led initiative aimed at improving substandard or deteriorating residential buildings. These programs often target urban renewal, slum clearance, or historic preservation, upgrading infrastructure while sometimes displacing residents. They have been implemented globally, from 19th-century tenement reforms to modern sustainable urban development projects.

comprehensive territory development program

A “comprehensive territory development program” is not a specific place or cultural site, but a strategic government or regional policy. These programs are designed to coordinate economic, social, and infrastructural improvements across a large area, such as a river basin or an underdeveloped region. Historically, such programs aim to boost a region’s productivity and living standards through centralized, long-term planning.

metro systems

Metro systems are underground railway networks designed for rapid transit in urban areas. The world’s first metro opened in London in 1863 to alleviate street traffic, using steam locomotives before electrification. Today, they are vital infrastructure in major cities worldwide, facilitating efficient public transportation.

industrial zones

Industrial zones are designated areas developed for manufacturing and industrial activities, typically established during the Industrial Revolution to centralize factories, infrastructure, and logistics. They have evolved from dense, pollution-heavy districts into modern planned parks that often incorporate environmental regulations and advanced technology. These zones remain crucial for economic production, trade, and employment in many countries worldwide.