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Despite being hit with unprecedented Western sanctions, the war with Ukraine has been accompanied by a noticeable increase in the well-being of Russians. A new study has revealed the extent of the domestic feel-good factor, with economists at the Bank of Finland Institute for Emerging Economics (BOFIT) finding the level of Russians’ satisfaction with their household and personal circumstances has hit its highest in a decade.

• To understand how the restructuring of Russia’s economy during wartime affected Russians, economists Sinikka Parviainen (BOFIT) and William Pyle (Middlebury College, USA) used data from the Russian Longitudinal Monitoring Service (RLMS), which has been conducted by the Higher School of Economics almost every year since the 1990s. This research tracks the economic well-being of Russian households and individuals with a sample size of around 6,000-8,000 households and 17,000-21,000 people.
• The economists looked at RLMS data from 2013-2023, scrutinising responses to the questions: “how satisfied with life are you right now?” and “how satisfied with your financial circumstances are you right now?”. They also looked at whether households had made large purchases over the past year, how much they spent on cultural events and how long they could maintain their current lifestyle if they lost their main source of income.
• They concluded that the first two years of Russia’s invasion — 2022 and 2023 — saw the highest levels of general satisfaction, and specific financial satisfaction had also returned to 2014 levels for the first time. That year is seen as a benchmark before Russia was plunged into an economic crisis following the annexation of Crimea, imposition of Western sanctions and an oil price crash.
• Large purchases fell to a minimum in 2022 but demand for non-food goods has since increased faster than inflation and wages, in line with The Bell’s earlier  calculations. There was also a sharp rise in the proportion of households spending money on entertainment: in 2023 this reached 2018 levels, the researchers noted. The number of respondents who said they would be able to last more than a few months on their savings reached a 10-year high.

• These findings correspond with Russia’s official statistics which also point to improved financial circumstances since the start of the war. In 2023, real incomes in Russia not only returned to 2013 levels after a decade of lost living standards, but surpassed the pre-Crimea level by 5%, the researchers highlighted.
• There are no surprises as to the cause — a huge increase in state spending on the invasion and the military-industrial complex that has driven record labor shortages and pushed wages up across the economy. The high salaries offered by the state to people sent to work at the front, as well as those paid to soldiers (from 200,000 rubles a month) have played a big part, and the main winners have been residents of Russia’s poorest regions, which have recorded an unusually sudden increase in bank deposits.

Why the world should care

Putin’s regime is unlikely to face any internal threat as long as Russians’ well-being and overall happiness is on the rise.

Source: “Russians’ wellbeing levels surge in face of war, sanctions and repression,” The Bell, 2 April 2025

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Today’s developers pay no less attention to creating comfortable residential environments in their projects than they do to configuring apartments, for example, and sometimes they pay even more attention to this.

In recent years, the concept of beautifying the area around residential buildings has been transformed from elementary landscaping of yards and equipping playgrounds to creating theme parks within residential complexes, divided into different activity zones, as well as designing additional spaces where residents of the neighborhood can gather, get acquainted, relax, play sports, and organize their own or their children’s leisure activities.

The role of such spaces is most often played by neighborhood centers, and planning these centers has recently become a real trend among developers.

The reasons

Residents of apartment buildings have always needed to socialize and spend time together. Back in Soviet times, people would often gather in courtyards to play dominoes, bingo, and table tennis. At some point the tradition was lost, but after the restrictions imposed during the Covid-19 pandemic were lifted, it literally sparkled with new colors.

In their article [sic: no link in the original] on communities, neighborhoods, and neighborliness, researchers from the Higher School of Economics noted that the first contemporary attempts to unite people living near each other into groups were especially noticeable after 2015, when people all over Russia began celebrating Neighbors Day. From a holiday in the classic sense of the word, Neighbors Day has quickly evolved into a multifaceted know-how for working with residents and getting them involved in such community work as spring cleanups and decorating yards for the New Year’s holidays.

With the emergence of urban agglomerations and the integrated development of new estates by developers, the need for communication among the people living there has increased. There is a logical explanation for this. In her time, Birgit Krantz, a Swedish sociologist, architect, and expert on neighborhood relations, argued that the ideal apartment complex contains between fifty to eighty apartments. If a complex has more apartments, it is difficult to manage it and maintain good neighborly relations.

There are many more apartments in new large residential projects, however, even if they are low-rise developments. This is where neighborhood centers come to the rescue. Consequently, they have become an integral part of people’s everyday lives in entire neighborhoods, functioning, per the American sociologist Ray Oldenburg, as “third places” (between home and work or school), as social anchors which facilitate creative interactions among individuals.

A clear demand

Today, the neighborhood centers running in new residential neighborhoods are literally bustling with life, and they are usually open seven days a week from early morning to late evening.

Delovoi Peterburg talked to residents at the KVS Group’s SouthTown development, where such a neighborhood center has been up and running for over six months. The center offers sports classes; clubs for children, including preschool prep; nanny services; rooms for business meetings and negotiations; and movie screenings. A puppet theater also periodically comes to the center on tour, and a planetarium was once even recreated in the space.

According to Anzhelika Alshayeva, director general of the KVS Real Estate Agency, all activities were free of charge for residents during the center’s first three months of operation; the tab was picked up by the developer. Now, the cost of classes is only 200 rubles, and the interest of residents continues to grow. With this in mind, the decision was made to launch the second stage of the neighborhood center — a teen club, which will be equipped with ping-pong and billiards tables, which will undoubtedly appeal to local youngsters.

An important social role

Most importantly, such neighborhood centers, in addition to creating stable communities of around particular interests and hobbies, offer residents various opportunities for professional and personal growth. As practice shows, neighborhood residents themselves provide professional services, working as nannies, coaches, and teachers. Thus, another important issue for the neighborhood as a whole — job creation — is solved. And the concept of the 15-minute city is implemented in the particular housing complex: without leaving home, a person can comfortably take advantage of the full range of social services and work in the same place.

In this sense, co-working spaces can be an important component of neighborhood centers, serving not only as a pleasant but also as a useful feature for buyers and future residents. In addition, a co-working space can potentially generate revenue, thus covering the costs of its own upkeep.

And it does not necessarily have to be a classic room with computers and a coffee machine. For example, in the aforementioned neighborhood center, in the amphitheater of Olympic Hopes Park, the developer decided to create a beauty co-working space — a space with work areas which can be leased by beauty industry professionals. The project promises to be an important element of the neighborhood’s infrastructure, contributing to the growth of small business and strengthening the local community. This comprehensive approach to neighborhood development and neighborly relations was also recognized by Delovoi Peterburg, which awarded it the newspaper’s award for Residential Environment Project of the Year in Creating Versatile and Comfortable Neighborly Infrastructure.

When speaking about the importance of neighborhood centers for residential developments, the experts interviewed by Delovoi Peterburg generally voiced confidence that adding such facilities to residential developments does not make projects much more expensive, but it can increase an an apartment’s per meter cost, as well as make a developer stand out from the competition. The experts recognized that the trend toward neighborliness, according to psychologists, will continue to grow, especially among residents of new neighborhoods.

Source: “Focusing on uniting residents of new neighborhoods,” Delovoi Peterburg, 31 March 2025. Translated by the Russian Reader