Complicating the work of small developers, the transition of the construction industry on the escrow account, together with the outbreak of the crisis has forced market participants to reduce activity. For the first half in Moscow, they took almost a third fewer projects than a year earlier. Despite the fact that trend may continue, the shortage of supply to the market is not threatened due to projects started in previous years.In the first half in the Moscow market of new buildings has seen 20 new projects, it is 29% lower than the same value last year when it was withdrawn on 28 objects. Such data results in their study of “Metrium”. Analysts added that the total area of the projects has reduced by only 0.8% to 1.1 million sq. m. Managing partner of “Metrium” Maria Litinetskaya explains that development activity has decreased in the first place on the background of the industry’s transition to the escrow account. “This has complicated the work of small players, causing consolidation of development,” she adds. An additional factor, according to Mrs. Litinetsky, was a sharp deterioration of the economic situation due to the pandemic COVID-19 and the accompanying suspension of construction work in Moscow and the Moscow region.Estimates of the Rosreestr, in the first five months of the year in Moscow was decorated 24.6 thousand contracts equity for the purchase of housing. Compared to the same period last year decreased by 29%. This momentum was short-lived and has not led to a noticeable decline in prices. According to “Avito real Estate”, at the end of the second quarter the average price of new buildings in Moscow amounted to 187,1 thousand RUB per sq. m. This was 1% below the first quarter, but 15.5% higher than for the same period last year.Maria Litinetskaya expects that trend will continue and the number of new objects will show a decline and by the end of 2020. But not all advisors predict negative dynamics. Thus, according to the Director of the Department of project consulting Est-a-Tet Novel Rodiontsev, developers actively preparing for launching new projects. “No interruptions, we do not fix,” he notes. According to calculations of “Metrium”, now in Moscow built a total of 300 thousand apartments in the projects, started in previous years, while selling traditionally represented no more than 40-50 thousand lots.Alexander Maralovodstvo summed up the first year of operation of the construction industry by new rules — according to the Ministry of construction, now only 35% of housing construction with attraction of means of citizens is conducted on the principles of project financing with the use of escrow accounts. A full transition to the new mechanism is expected in 2022, will be completed when the facilities that continue to build under the old rules of equity ��participation.Read more
