Housing construction in Russia is declining

a Ban on the construction of equity under the old scheme and the transition to the escrow account has resulted in a reduction of builders and housing construction.

the Area of apartment buildings under construction from 1 July 2019 fell by 18 percent. During this period, the number of developers has decreased by 14 percent and the number of registered developers has decreased significantly according to the Unified information system of housing construction of the portal “Our.house.of the Russian Federation”.

the reduction in the number of houses under construction is due to the high base comparison — in the past years the country had a housing boom and built a lot of housing, for example, in 2019 was introduced to 43.5 million square meters of apartment houses, told “Vedomosti” representative of the Federal housing and operator’s House.Of the Russian Federation. Of housing commissioning in 2018 amounted to 75,3 million square meters, according to Rosstat.

in addition, the Single entered the informational data for the projects approved and received a building permit, published a project Declaration.
This process takes 4-6 months. This leads to uneven reflection of the pace of construction in the informational.

By the beginning of 2020 under construction was 107,5 million square meters of housing. While developers are building less than 30 percent of housing in Russia using an escrow account, calculated “House.Of the Russian Federation”. The volume of projects that have received the right to build housing under the old rules (without using escrow accounts), amounts to 68.4 million square meters. About 96 percent of these projects will be commissioned in the next three years.

From 1 July 2019 Russia introduced new rules for housing developers allowed to raise money the Russians and to build houses at their expense. Now the money of buyers of apartments are placed in escrow accounts in banks. The houses are built at the expense of loans, and developers get access to money “investors” only after putting the house in operation. To get credits and pass a Bank selection developers need to observe a number of requirements of financial stability, including the amount of capital.