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George Ostapkovich

Director of the Center for Market Studies of the HSE Institute for Statistical Studies and Economics of Knowledge at HSE.

HSE expert: necessary to “freeze” game rules for housing construction

12.04.2019

The Russian construction industry has reacted negatively to legislative changes related to the transfer to escrow accounts. According to Rosstat, in January-February of the current year negative growth rates of housing construction are observed. Negative dynamics are associated with the lack of stability and clear rules of the game in housing construction, said George Ostapkovich, director of the Center for Market Studies of the HSE Institute for Statistical Studies and Economics of Knowledge at HSE.

“First of all, such a decline in business activity in housing construction is caused by a deep zone of uncertainty that most construction companies fell into due to serious legislative changes related to the transition to project financing and escrow accounts,” said Georgiy Ostapkovich.

The expert noted that the purpose of such changes is to protect the buyers of housing under construction from possible risks, as well as to increase the level of professionalism of developers. However, in order to stabilize the situation on the market, it is necessary to establish and fix clear and understandable rules for work.

“One thing is clear: it’s time to end with this rule-making and set, even if tough, but the final rules of the game for housing. And to declare to everyone that these rules will not change for at least the next 4-5 years. This will enable developers to more adequately build business plans for the future, ”stressed Georgiy Ostapkovich.

Source: Unified Register of Developers

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