Housing developers complained bankers from expensive loans

Member of the General Council of “Business Russia” Vladimir Prokhorov, sent a Vice-Premier Marat Husnullina a letter with a request to analyse cases of inflated rates to real estate developers who erect buildings using escrow accounts.

the letter proposed to oblige banks to disclose information on the cost of project financing. The representative of Marat Khusnullin confirmed the “news” getting the message.

the letter States that interest rates on loans for housing on average now account for 12-18 percent. And according to official data of the Bank of Russia, interest rates on such loans not exceed 7 percent.

As explained by the representative of the Bank of Russia, the bet on developers depends on the risk assessment of the borrower and of the project. Upon receipt of the cash holders in the escrow account rate should be reduced.

a Ban on the construction of equity under the old scheme and the transition to the escrow account has already reduced the number of developers 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”.

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 “real estate 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.