Dmitry Volkov: Lowering administrative barriers will positively influence the cost of real estate for buyers
Reduction of administrative procedures allows developers to predict the timing of their project implementation with high accuracy, considers Dmitry Volkov, public official of the Agency for Strategic Initiatives in Moscow.
“Previously the process of building in Moscow resembled an equation with many unknowns. Entering a project, we never know what will happen at the end, what will be the production cost, will we be able to make profit or not. Now, given the fact that the process is almost regulated, it is possible to calculate,” said Dmitry Volkov.
According to him, the investor now understands the process of project implementation, and hence he can minimize his costs. This in turn should positively affect the final cost of a square meter for real estate buyers.
“Will the developers be able to give this margin to final consumers, or they use it for their own development – it depends on the situation on the market, on the difference between supply and demand, and on individual policy of each developer,” concluded the public official of the Agency for Strategic Initiatives in Moscow.