Photo: Ilya Pitalev / RIA Novosti
The cost of housing in the Russian new buildings after the transition of developers on project Finance will rise by no more than five to seven percent. This is with reference to Deputy Minister of construction and utilities of the Russian Federation Nikita Staresina reports TASS.
“There will be no 15-20 percent [of growth of prices after the transition to the new rules] if you have high-quality projects that are sold on the stage of construction at least 70 percent. In the cycle of construction and a half-two years, the appreciation will not be more than five to seven percent,” said Staseson.
According to the Deputy Minister, under the old rules, without switching to project financing, will be completed about half of the construction in may of 2019, the facilities.” [These residential complexes will be built] with the involvement of citizens, but with strict control by the regional authorities and stringent implementation period of projects — a maximum of two to three years”, — said Stasyshyn.
From 1 July 2019 the Russian developers adopting the new rules on the financing of projects in order to protect the rights of shareholders are forbidden to spend their funds before the completion of construction. The main source of funding was supposed to be a banking credit. Working with real estate company as a possible consequence of the innovations referred to, in particular, withdrawal from the market of some players and the growth of housing prices in new buildings.
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