Report: Russian govt may ban sales of unfinished housing from 2020 - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Report: Russian govt may ban sales of unfinished housing from 2020

MOSCOW, Jun 1 (PRIME) -- The Russian government may ban sales of unfinished housing already in 2020, business daily Vedomosti reported Friday citing participants of a meeting chaired by President Vladimir Putin on Wednesday.

The presidentТs position is Уto get away from shared construction,Ф one of the participants said.

The measures are aimed at protecting buyers from actions of unfair developers or in the situation of bankruptcy of developers.

Previously, the law encompassed abolishment of shared construction in Russia from July 1, 2019, but a source said that Putin demanded to do it earlier, almost this year. УA possibility to sell only completed housing from 2020 was also discussed,Ф the daily said.

Amendments to the shared construction law adopted in late 2017 encompassed that developers will be able to receive money from sold housing only after the delivery of finished apartments to buyers from July 1, 2019. In case housing is bought at the stage of construction, money is to be held on special accounts at banks with both sellers and buyers having no access to them. In case of a license recall from a bank, the Deposit Insurance Agency (DIA) will return up to 10 million rubles to buyers, while developers will have to finance completion of construction with own or borrowed funds.

Aton analysts said that as a result of new measures offer on the real estate market will decrease, while prices will grow significantly.

VTB Capital analysts that the number of unfulfilled contracts of shared construction on the Russian real estate market exceeds 100,000. Urban Group, which is currently on the verge of bankruptcy, is the most recent example, they said. If developers have to finance construction purely with own and borrowed funds, the price of housing will grow by around 20%.

Oleg Stvolinsky, head of Real Estate WorldwideТs Russian office, told PRIME that the new decision will evoke serious problems at developers and may lead to bankruptcy of many of them.

(62.0188 rubles Ц U.S. $1)

End

01.06.2018 18:40
 
 
Share |
To report an error select text and press Ctrl+Enter
 
 
Central Bank Official Rate
1W 1M 1Y
USD
EUR 78.0753 +0.3224 22 sep
USD 66.2497 -0.2228 22 sep
Stock Market Indices
1D 1W 1M 1Y
MICEX
rtsi 1149.53 +0.78 18:50 21 sep
micex 2426.80 +1.08 18:50 21 sep
Stock Quotes in RUR
1D 1W 1M 1Y
GAZP
gazp 158.64 +2.78 18:49 21 sep
lkoh 4737.50 +0.78 18:49 21 sep
rosn 440.40 +0.39 18:47 21 sep
sber 193.44 +1.19 18:49 21 sep
MICEX Ruble Trading
1D 1W 1M 1Y
USDTD
EURTD 78.0275 -0.1025 14:59 21 sep
USDTD 66.5250 -0.2275 17:44 21 sep