2010 SLOVAK UNIVERSITY OF TECHNOLOGY14

K. SZEKERES

ROOF TOP EXTENSIONS FOR MULTIFAMILY HOUSES IN SLOVAKIA

KEY WORDS

• Roof top extension,• refurbishment of multifamily houses, • sustainable development,• housing stock in Slovakia.

ABSTRACT

In the countries of the European Union with the exception of Malta, approximately 100.1 million multifamily dwelling units are situated. These dwellings count for an average of 47.5% of the total housing stock in European Union countries. At present in Slovakia and also other countries of Central and Eastern Europe, there are vast housing areas which were built after World War II. Slovakia´s multifamily housing stock was privatized during the 1990s. Considering that the economy of Slovakia is not capable of replacing the existing housing fund, which is located in the multifamily houses that were built after World War II, it is necessary to place an increased emphasis on the renovation of this housing fund. The expenditures for the refurbishment of multifamily housing stock in recent decades, when compared with the demand, have been at a very low level. The main problems involving the current multifamily housing stock in Slovakia are: the need for modernization, the low level of energy efficiency, and the insufficient level of building maintenance. One of the options for creating sufficient sources for the renovation of apartment buildings is to utilize the roofs of apartment buildings as construction areas for building additional floors (over - roofing). The means acquired from the sale of the new floors after deducting the costs can be used for renovation. It is a matter of a one-time possibility, which is limited by many factors that depend on the localization and constructive technical solutions for apartment buildings.This article is an outcome of the SuReFit “Sustainable Roof Extension Retrofit for High-Rise Social Housing in Europe” international research project.

Kristián SZEKERES email: kristian.szekeres@stuba.skResearch field: Economics of the construction industry and urban development, sustainable urban develop-ment, construction management

Address:Department of Economics and Building Industry Management, Institute of Management, Slovak University of Technology in Bratislava, Radlinského 11, 813 68, Bratislava

2010/4 PAGES 14 – 20 RECEIVED 19. 10. 2009 ACCEPTED 20. 10. 2010

INTRODUCTION

The constant growth in the human population places increased demands on the development of urbanized areas and on ensuring a sufficient number of housing units. The population is increasing in various ways all over the world. The amount of annual growth in the European Union has been approximately 0.4% in the last 5 years. This percentage is low compared with the population growth in some Asian countries such as China and India. On the contrary, the size of the area of the European Union is relatively small compared with the population. This means relatively high population densities

in the EU and increasing pressure to use land effectively. Building up an area covered by multifamily houses is one possible solution for preserving land. This style of development was preferred in the Central and East European (CEE) countries in the second half of the last century. In the surroundings of the central parts of towns, vast agglomerations are rising, the functioning of which places increased demands on transportation in general and the development and operation of public transportation and the technical infrastructure. Within these agglomerated areas a contrary effect, which is often a consequence of the negative effects of the agglomeration (noise, vehicles, exhaust

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fumes, problems with parking), is a decrease in the attractiveness of housing, which influences the pricing of real estate and the socioeconomic structure of the population. This phenomenon can lead to a change in a housing area with a favorable geographic location to mixed-used areas, which can then lead to an increase in its attractiveness on the real estate

market; however, it can also result in the gradual degradation of the physical condition of buildings as a consequence of neglecting regular maintenance, which can be followed by another decrease in its attractiveness on the real estate market. In the countries of the European Union (EU 27, excluding Malta), approximately 100.1 million multifamily dwelling units are situated, according to the Report for the European Housing Ministers Conference held in Prague on 03. 03. 20051. These dwellings constitute an average of 47.5% of the total housing stock in the European Union countries. Over one-third of the multifamily dwellings are situated in high-rise buildings with more than 4 floors. Roughly calculated, there are 36 million high-rise dwellings. Dwellings situated in high-rise buildings account for an average of 17% of the total housing stock in the EU countries. The percentage of high-rise dwellings in new members of the EU (joined after 1.1. 2004) is higher (34.1%) compared to the old member countries (14.3%). The share of multifamily dwellings of the total housing stock in the new member states is on average 55.8% and 47.0%2 on average in the old member states. The difference between the share of multifamily dwellings of the total housing stock in the old and new EU member countries is not as high as the difference in the case of high-rise dwellings. The reason the above statistics are mentioned is that the number of storeys in multifamily houses has an effect on the financing of a roof top extension project. In general, there is a rule that fewer storeys mean fewer additional costs (elevator, fire safety, deeper foundation, etc.) and greater development potential.

Figure 1 Total population in the 27 EU countries in the last decade (source: EUROSTAT web site)

Note: The inhabitants of the given area on 1 January of the year in question (or, in some cases, on 31 December of the previous year).

Note : The ratio of the mid-year population of a country on a given date to the size of the country.

Figure 2 Population density in European countries (source: EUROSTAT web site)

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Multifamily housing stock in Slovakia

At present in Slovakia and also other countries of Central and Eastern Europe, there are vast housing areas which were built after World War II. These are complexes of residential buildings that were built in the form of mass housing construction. Until 1990, the construction and also the renovation of residential buildings and housing developments were planned. There were many mid-sized and large construction companies which were able to cover the demands for new construction and renovation. After 1990, there was a change in the socio-economical model of the functioning of the countries of Central and Eastern Europe. Changes were manifested in every area of life; in the area of housing policy, they led to the massive privatization of the housing fund located in residential buildings in Slovakia for prices which usually did not correspond to the market value of the real estate. The changes negatively affected the construction companies, which were used to regular orders and regular salaries. In the 1990s, the development of construction was characterized by the transformation of construction companies and their adaptation to the new conditions and a gradual decrease in manufacturing capacity in the area of housing construction and renovation. Part of the redundant capacity was used during the realization of big infrastructure projects ordered by the state. The privatization of the housing fund negatively affected its technical condition. Regular renovations ceased or were performed in non-systematic ways, depending on the financial situation and “the level of awareness” of the new owners. A law on condominiums in Slovakia was enacted; it prescribes the establishment of a condominium in the case of multiple ownership. Housing condominiums are governed by Act No. 182/1993 Coll. on the ownership of dwellings and non-occupational spaces, as amended by subsequent regulations. The owners can choose whether to establish a condominium in a multi-family residential building or enter into a management agreement with another natural or legal person. Condominiums are currently significant players in the management of multifamily housing stock, even though the number of professional facility management companies has increased in recent years. The former Czechoslovakia played an important role in the construction and management of multifamily housing cooperatives. Their share of the market decreased in the second half of the 1990s. The market share of cooperatives before 1991 was 45% but was only 28.5%3 in 2001.

Multifamily dwellings on the real estate market

The state gradually accepted various measures to support the renovation of the housing fund which, with regard to the amount

Figure 3 Share of multi-family residential dwellings in housing stock

Source: Statistical Office of the Slovak Republic Census 2001, Ministry of Construction and Regional Development of the Slovak Republic, www.build.gov.sk

Figure 4 Tenure structure of multifamily dwellings in 1991

Figure 5 Tenure structure of multifamily dwellings in 2001

Source : 1991 and 2001 Census

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available and the necessary amount of financing, could not resolve the accumulating problems. During the eighteen years after 1990, the real estate market in Slovakia was transitioning to the rapid development of real estate prices in attractive areas of Slovakia. It is a peculiarity of the situation in the real estate market in Slovakia that the prices of old and new apartments are comparable in attractive regions. The increase in the prices of real estate that characterizes the whole area of Slovakia is dependent on the level of the demand for real estate. In the opinion of real estate experts, we can expect another increase in the prices of real estate in the future. However, the estimated increase will gradually lose its dynamic and gradually lead to a differentiation in the increase (decrease) of the prices of apartments in family houses, apartment buildings, and available land for construction. In the future we can expect that increases in the prices of dwellings in apartment buildings will slow down or stagnate and that the wealthier portion of the population will find living in family houses situated in the suburban areas of central towns more attractive. This development will have an unfavorable effect on the environment, which will be represented in the form of a decrease in greenery and agricultural soil and an increase in the volume of transportation. Likewise, we will also see an overpricing of the functioning of cities – an increase in energy consumption. In the inner cities the segregation of the socially weaker classes will have a negative influence on the redevelopment of apartment buildings in the less attractive areas of the city and those in a bad technical condition. Other states in Western Europe have been confronted with similar developments and problems. After undergoing negative experiences, these states are at present trying to enact active policies that focus on a decrease in social segregation. A part of these policies is also aimed at the refurbishment of decayed neighborhoods as well as support for the refurbishment of apartment buildings built in the form of mass construction. Compared to the countries of Central and Eastern Europe, the Western European states have an advantage in the fact that apartment buildings mostly have one owner who rents out the apartments. One owner, compared to several dozens of owners (the present state in Slovakia), can more easily prepare and realize the complex refurbishment of an apartment building. In most cases owners in Western Europe own apartment buildings for a long time; for that reason they have a better understanding of the construction modifications of structures built in the past and their technical condition. They also have the means accumulated for any necessary renovation. On the contrary, owners in Slovakia are often not aware of what the physical condition of the structure they own is and what types of work must be performed in order to maintain it in a satisfactory technical condition. There is also the problem of agreeing on a schedule and form of renovation and on an increase in the allocations paid into the repair fund which covers the renovation costs. The law on condominiums defines the

minimal amount to be paid into the repair fund to be approximately 25 cents/m2 month. This means that in the case of a flat with 60 m2 and a 10 m2 share of the public space inside a house, the monthly payment would be 17.5 Euros. This amount, when compared with the actual need for refurbishment, is too low. The required level of payments according to the estimates of facility managers has to be close to 1 Euro per m2/month (source: personal investigation4). In many cases this amount is not acceptable for socially weaker groups such as retired people who live alone. Recently, the situation has improved as more generous loans from banks have become available for the renovation of the housing fund for which owners do not have to use their apartments as collateral to the banks. After owners decide to take a loan, they have to pay for it from an account which contains the payments to the repair fund.

Possible sources of financing the refurbishment of MF houses

Through their architectural, technical and functional solutions, constructions built in different time periods respond to the demands laid down by the society of a certain era. Since we can follow the growth of the standard quality of life over the long-term and also the growing scientific-technical developments in recent years, buildings built half a century ago cannot fully meet current demands, which is the reason why their gradual reconstruction, conversion or replacement by new buildings is necessary. Considering that the economy of Slovakia is not capable of replacing the existing housing fund, which is located in multifamily houses that were built after World War II, it is necessary to place an increased emphasis on the renovation of this housing fund. To support the renovation of apartment buildings, various grant schemes can be created and financed by national and European sources (even though the question of the utilization of European means is complicated with regard to the proprietary condition of the real estate) and from loan sources granted by financial institutions, etc. In 2003, the state expenditures on housing in Slovakia represented 2.8% of the total annual budget. The housing budget was divided into 4 main areas: subsidies for new construction 18.3%, loans 30.1%, interest subsidies 5.9%, and subsidies for contractual saving for housing 32.3%.5 State subsidies are oriented towards the provision of funds in the following fields:• provision of rental housing for socially underdeveloped population

groups, • preparation of land and the development of a technical

infrastructure (public drinking water, sewage and gas pipe networks, electricity and public roads) as a precondition for the construction and utilization of new housing,

• removal of system failures of residential buildings.

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System failures are defects based on an incorrect design and technical solution for multifamily houses, which were created according to a standardized project using prefabricated technology. The subsidy for the removal of system failures is set by two parameters: the proportion of the procurement cost (up to 50%) and the cost per square meter of an apartment floor area.State-supported loans are based on three funding systems, particularly:• contractual savings for housing,• mortgage loans,• State Housing Development Fund. Compared with the demand for the refurbishment of multifamily housing stock, subsidies are on a very low level. Currently, the main problems of the multifamily housing stock in Slovakia are: the need for modernization, the low level of energy efficiency and an insufficient level of building maintenance.One of the options for creating sufficient sources for the renovation of apartment buildings is to utilize the roof of an apartment building as a construction area for building additional floors. After deducting the costs, the means acquired from the sale of the additional floors can be used for renovations. This is a matter of a one-time possibility, which is limited by many factors that depend on the localization and constructive technical solution of the apartment building. The aim of this thesis is to investigate these factors and suggest a financing model and a process for realizing the renovation of an apartment building in the form of additional construction. The paper aims to contribute to the development of the theoretical knowledge of passive energy prefabricated construction schemes available for the mass build-ups of apartment buildings in Slovakia.

Characteristics of the technical and qualitative levels of MF houses built before 1991

MF houses built before 1945In Slovakia the construction of multifamily houses started after World War I. During this period mainly 2 and 3-storey buildings were built with a traditional construction system: a concrete foundation, solid brick walls, wooden ceilings and sloping roofs. In this period 1-4 room flats with a size of 50-125 m2 were constructed. In this period there was no typification; those houses are nowadays situated on attractive sites inside the city. According to the author’s personal estimation, there are around 100 houses from this period which could be extended by one or two floors.

MF houses built between 1945-1960Between the years 1945 and 1960, Slovakia continued the construction of multifamily houses. The height of the new houses increased up to 6 floors. As of 1950, project typification started. The

new houses mainly had a sloping roof, but at the end of the 1950s, some new modular systems with flat roofs were designed. During this period 1-3 room flats and studios with a size of 25-75 m2 were constructed. According to the author’s estimation, there are around 1000 houses from this period which could be extended by one or two floors.

MF houses built between 1960-1991 In the 1960s new modular systems, which were mainly designed with prefabricated panels, were introduced. The height of the new houses was increased up to 13 floors. The construction of new high-rise buildings rose. Most of the flats in multifamily houses in Slovakia were built in the 1960s and the 1970s. The size of the new flats from this period range from 25 to 84 m2. According to the author’s estimation, there are around 3500-5500 multifamily houses from this period which could be extended by one or two floors.

Figure 6 Age of the multifamily housing stock in Slovakia

Source : Ministry of Construction and Regional Development of the Slovak Republic, 2005

Figure 7 Construction methods of multifamily houses

Source : Ministry of Construction and Regional Development of the Slovak Republic, 2005

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Estimated potential roof top extensions in Slovakia

In different parts of Slovakia, there are around 4500-6500 multifamily houses which could be extended by one or two floors. Of course, this is only a rough estimation, which is based on the number of houses which are lower than 8 floors. The estimation is based on the statistical data presented in Figure No. 8.

Advantages of roof extensions in Slovakia

The advantages of roof extensions in Slovakia are mainly the same as in other countries. The main advantages are :• Consering land, especially in densely urbanized areas, such as,

for example, the Bratislava region, • The creation of additional building sites in attractive areas of

inner cities, • Supporting positive changes in the structure of high-rise

residential buildings by creating new high-standard flats, • Supporting the replenishment of the current housing stock by

flats that are larger and smaller than average, • Improving the current appearance of buildings from an architectural

point of view and improving their technical condition • Increasing the efficiency of use of the current technical

infrastructure, social infrastructure and public transport facilities • The creation of additional sources to finance the refurbishment of

multifamily houses.

Disadvantages of roof extensions in Slovakia

The disadvantages of roof extensions in Slovakia are mainly the same as in other countries. The main disadvantages are:

• A more efficient use of urban space, but a more negative effect on its attractiveness,

• The design of individual roof extension projects without any coordination may cause a degradation of the original architectural and urban concept of an area. This is a serious problem in Slovakia today,

• Along with the construction of additional flats comes an increased lack of parking facilities,

• Potential problems with the bearing structure and foundations of structures after their roofs are extended,

• Problems occurring during the construction process. Damage caused by the effects of weather, for example, water leaking into the flats on top floors.

Factors which affect the financing of a roof top extension projectThis section will investigate which factors have an effect on a project’s financing. The most important factor is the price level of the real estate market in a specific region. This factor determine the level of the income expected from selling the newly-created apartments. The second most important factor is the current physical condition of the multifamily building on which a new roof top extension can be created. The technical solution of the foundation and the type of soil under it is important. These limitations, joined with the number of storeys of a multifamily house – for example, regulations referring to the height determined by the spatial plan of the area and those referring to fire safety, are important. There are some other regulations enacted by local municipalities which are also potential sources of additional expenditures, for example, the need to create new parking places. There are some other costs which have a lesser effect on a project’s financing, such as: additional costs caused by the need to lease

Figure 8 Number of multifamily houses sorted by total number of storeys

Source : http://www.rozvojbyvania.sk, 09/2007

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public space to establish a limited construction site and additional costs caused by construction work carried out in locations at higher altitudes.

CONCLUSION

Multifamily houses are situated in every European country. In the Western and Eastern parts of Europe problems involving multifamily houses have a different scope. There is one element which is similar in every country and that is the energy-saving potential after refurbishment. The creation of additional apartments in existing living areas is a good opportunity to correct the existing structure and sizes of apartments. The share of flats with a size of 100 or more square meters is very low in the current multifamily housing stock in Slovakia. Roof extensions for multifamily houses are a good opportunity for creating additional dwellings close to the central part of cities without new construction on existing green spaces. The profits from

the sale of new dwelling units is an “extra source” for financing the reconstruction and modernization of multifamily houses. Their current technical condition (especially in the CEE countries) and appearance is at a low level. This situation is partly the result of the low level of investment in maintenance in recent decades. Roof top extensions in existing residential areas is a very complex issue and could have positive and negative effects on living spaces and living standards.

(Footnotes)1 Source: PRC Bouwcentrum International, The Netherlands, Sustainable Refurbishment

of High-Rise Residential Buildings and Restructuring of Surrounding Areas in Europe, Report for the European Housing Ministers Conference held in Prague on 03. 03. 2005

2 Source: PRC Bouwcentrum International, The Netherlands, Sustainable Refurbishment of High-Rise Residential Buildings and Restructuring of Surrounding Areas in Europe, Report for the European Housing Ministers Conference held in Prague on 03. 03. 2005

3 Source: 1991 and 2001 Census4 Source: Based on a questionnaire survey amongst representatives of an association of

property owners in the central part of the town of Šaľa realised from 8/2008-10/2008. The survey was part of the authors PhD. research.

5 Source: Ministry of Construction and Regional Development of the Slovak Republic, www.build.gov.sk

REFERENCES

[1] PRC BOUWCENTRUM INTERNATIONAL, The Netherlands, Sustainable Refurbishment of High-Rise Residential Buildings and Restructuring of Surrounding Areas in Europe, Report for European Housing Ministers Conference held in Prague, 03. 03. 2005

[2] ZUZANA STERNOVÁ, et al., Obnova bytovývh domov, Hromadná bytová výstavba do roku 1970, (Refurbishment of MF houses, MF housing developments before 1970), Jaga Group, Bratislava, 2001

[3] ZUZANA STERNOVÁ, et al., Obnova bytových domov, Hromadná bytová výstavba po roku 1970, (Refurbishment of MF houses, MF housing developments after 1970),Jaga Group, Bratislava, 2002

[4] KRISTIÁN SZEKERES,: Nadstavba a obnova bytových domov. (Roof Top Extensions for Multifamily Houses in Slovakia), In:

Nehnuteľnosti a bývanie. - ISSN 1336-944X. - Vol. 2, No. 2 (2007), pp. 67-69

[5] KRISTIÁN SZEKERES, Výskumný projekt SuReFit, (SuReFit Research project), In: Nehnuteľnosti a Bývanie Vol. 1/2007, ISSN 1336-944X, 2007

[6] EUROSTAT website, http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1090,30070682,1090_33076576&_dad=portal&_schema=PORTAL, up to date 05/2008

[7] Ministry of Construction and Regional Development of the Slovak Republic website, www.build.gov.sk, up to date 05/2008

[8] Statistical Office of the Slovak Republic website, www.statistics.sk, up to date 05/2008

[9] SuReFiT project web site, http://project.demobv.nl/sure-fit, up to date 05/2008

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