Administrative barriers no longer number one problem for developers


The issue of financial resources availability has become number one, stressed the Head of the Urban Planning Policy Department of Moscow Sergey Levkin.

Recently published results of the international Doing Business ranking has shown strengthening of Moscow’s positions as an investment-attractive megacity, considers the Head of the Urban Planning Policy Department, Sergey Levkin.

Due to the measures aimed at reducing administrative barriers in construction industry, which are being taken in Moscow, the capital of Russia has ranked 115th position in terms of investment attractiveness amongst world’s megacities, says the Head of the Urban-Planning Policy Department, Sergey Levkin.

“There are 190 countries participating in the ranking. We joined this ranking in 2013. According to this year results summed up by the World Bank in October, we have risen by 4 positions, achieving 115th position. It may seem to be only 4 positions but it is a very significant step forward. In 10 months we have cancelled 5 procedures, have reduced their terms by 14,5 days. Besides, the service cost has been reduced by 10%,” informed Sergey Levkin.

He reminded that in the early 2013 when Moscow just started to participate in the ranking, the city ranked 178th position.

This progress is directly linked with administrative reform and transferring state services to e-format. Certainly, getting used to new resources was not promptly settled. But in 2013, 7 procedures were transferred to e-format and only 12% applicants made use of these services in e-format during the first year. To date, all 13 state services are provided in e-format. 12 out of them can be obtained solely in e-format. Today 85% applicants made their choice in favor of e-services,” noted the Head of the Department.

Sergey Levkin emphasized that real investments stand behind this ranking. “Over 41,5 million square meters of different types of real estate including 15,5 of homes were commissioned since 2011. About 84% investments in these buildings were private. This is the result of a trust to our work. They always watch a possibility to turnover this money for the shortest period of time so as to gain better profit. And, you know what result makes me happy – according to VCIOM (“Russian Public Opinion Research Center”) administrative barriers are no longer number one problem for developers as it was 5 or 6 years ago. The issue of financial resources availability heads the list today,” commented the Head of the Department.

The Doing Business ranking in terms of “Dealing with Construction Permits” is based on ranging of economies of various countries regarding procedures, their amount, terms of passing through them and cost for constructing a “reference object”. A two-floor storehouse with area of 1300 square meters is chosen as this standard.

Interfax – Real Estate