KAZANSKY NIKOLAY V.

Modern context of housing solutions introduced in May by Presidential Decree is mainly focused on two issues: shared construction participants’ rights provision and shift towards project financing. The state and sectoral authorities were tasked with redistributing functions of financing and control between representatives of the construction and banking business. At the same time, the volume of construction and liquidity of construction products should not have been affected. This tasking of reference actualized the problem of expanding mortgage lending, which is capable of supporting primarily the liquidity of residential real estate. The system measures taken have allowed for the last ten years reducing the mortgage rate by more than 37%. This made it possible to expand by a third the potential demand for residential real estate due to its high elasticity. At the same time these processes have affected the increase in the price of housing under construction. As a result, the analysis showed that in the conditions of a decrease in the level of real incomes, the mortgage business is not in a position to support the demand even in the conditions of a decrease in the interest rate to 8%. A drop in demand in conjunction with the transition to the use of new building rules, escrow accounts creates serious challenges to the viability of the subjects of the investment and construction business.