Banks are increasingly refusing to give the developers credits

strict control of construction companies from banks after the industry’s transition to project financing caused the growth in housing prices, said Deputy Minister of construction, housing and utilities Nikita Stasyshyn.

the cost of 1 sq m is growing because of the transition to project funding, writes “Rossiyskaya Gazeta”. A large number of housing units completed under the old scheme, with the participation of the shareholders. Also increasing the cost of metal materials, the industry saw the “white” wages for the builders.

However, the banks increasingly deny the developers in the credits. According to the Deputy Chairman of the Bank of Russia Olga Polyakova, banks refuse to provide financing for almost 40% of the applications developers. Banks are not willing to lend to low-profit projects and developers with a negative reputation, said Polyakov.

Common reason for denial of credit is the poor quality of preparation of documents for banks, not only developers, but also the regional authorities issuing the building permit.

the National project “Housing and the urban environment” envisages that by the end of 2021 in Russia needs to build a 160 million square meters of housing, which is approximately twice more than now.

meanwhile, demand for such number of new buildings, especially at the rate of 9% per annum. It is necessary to increase the availability of housing, but not through reducing the cost per square meter, said Stasyshyn.

According to the Ministry of construction, the number of new construction sites has decreased in 2019 40%. Statesin attributes this to lack of “ability and capacity of the backbone networks in the cities to implement new projects”.

In particular, developers who have switched to using an escrow account, are not able to lay in the cost of the project, the construction of networks of roads and social objects. In this regard, the Ministry will change the approach to the program “Stimulus”.