Administrative reform helped developers to plan investment and reduce costs
Since 2011, extensive work has been carried out to regulate administrative procedures in construction. During this time, it was possible to reduce by three times (from 48 to 15) the number of procedures required for the construction of the reference object, and almost twice (from 452 to 230 days) to reduce the period of their passage.
“The main thing in the changes that have occurred is not even a reduction in the number of approvals, but their strict regulation. Due to the fact that the Moscow government has formed a clear regulation and sequence of approvals, the developer can with a high degree of probability say what time all the approvals required by the legislation will be received”, notes NEO Center partner Vladimir Akhapkin.
This allows you to more accurately plan investments in the project, makes income more predictable, reduces costs. “The timing of the implementation of construction projects from obtaining a land development plan for the land plot (GPZU) to permission for commissioning, depending on the uniqueness of the project, its location, etc. reduced from 10 to 30% – this saves at least 5% of the project budget”, says the expert.