Suburban developers told about the risk not to sell 15% of new buildings

At least 15% of new buildings in the Moscow region will not be demanded by the population, if not reduce the cost of primary housing, said the President of Association of builders of the Moscow region, CEO of the development company Urban Group Andrey Puchkov, the expert session exhibition MIPIM-2016. He noted that the volume of supply on the market of primary real estate on 30% exceeds demand, reports “Interfax-real Estate”.

In the highly competitive market a major catalyst for demand reduction in the cost of housing, said Beams. According to him, reduction of prices of apartments in new buildings must “not come at the expense of dumping or threat of reduction in margins”, and due to the so-called investment cost. It includes the costs for connection to engineering networks, construction of social objects and roads, as well as “exorbitant interest on loans, expenses for compliance with already useless regulations type of exposure,” said the head of the Association.

“All this requires deep institutional changes and support from the state, but makes it possible to achieve cost reduction by 20%,” he said.

The head of Moskomstroyinvest Konstantin Timofeev said Wednesday that the Moscow authorities do not see any decline in activity of developers in housing construction in Moscow. “The tempo they scored big objects build, no delays”, — he said (quoted by TASS). Timofeev noted that in 2015, were agreed upon projects for the construction of 40 million square meters of real estate, and this, according to him, “three, even four years ahead.”

“Even if the market will go some developers, it clearly will not be the strongest developers. It will the so-called commercial selection, there’s nothing wrong”, — said the head of Moskomstroyinvest.