Any changes in legislation should be careful thought
Since July 1, 2019, amendments to 214-FZ and related legal acts come into force, according to which Russian developers are obliged to switch to project financing using escrow accounts. At the moment, about 30% of developers in Moscow have declared their readiness to switch to escrow accounts, the remaining 60% remain in the old system, will complete construction of facilities and work under equity participation agreements directly with construction participants.
At the same time, not all participants in the construction industry look at these innovations with optimism, said Rustam Arslanov, sales director of the Graniel group of companies.
“Commercial structures in the construction industry operate effectively only under stable conditions in the country. Modern residential complexes are large-scale integrated land development projects that include dozens of residential buildings and all the necessary social infrastructure facilities for living. Such large projects are built from two to five or six years. When these conditions are constantly changing, it is quite difficult for developers to restructure their business models. And if the changes are significant, then the initially profitable object may become unprofitable. Therefore, any changes in the legislation should be carefully considered and new work rules for developers should be announced long before their entry into force. And the best of all is to apply to new, not yet started projects”said the expert.
Source: Komsomolskaya Pravda