Ivan Romanov: predictability of investment projects has increased by an order
Most developers are acclaiming not only reducing of the number of procedures but their strict regulation, says Ivan Romanov, the Managing Director of LSR Group in Moscow.
According to him, after obtaining a land plot and an urban planning documentation a developer in Moscow can enter a construction site and start the works on it in six months – this time is required to change the permitted use of the land plot, to develop of architectural and urban planning decisions (AGR) and to obtain a construction permit – merely about 10 procedures.
“Earlier on, before conversion to electronic format the process of filing in applications, and development of regulations for procedures, state officials could lengthen out the process for years not giving any clear response to a developer,” said Ivan Romanov.
According to him, by virtue of the Moscow government, which formulated clear regulations and sequence of processing approvals, a developer can predict the timing for complying with formalities with high confidence.
“This allows us to plan investments for projects and makes the earnings potential more predictable. In addition, it reduces our costs, so we can offer our customers the housing at lower price,” stressed Ivan Romanov.