Sector expert Alexander Sharapov, at the 18th Moscow Real Estate Market Leaders Forum, expressed serious concern about possible mass bankruptcies among developers operating in the Russian market. The reason is the high interest rates on loans. TASS reports on this today, November 12.
“We need to look very carefully at what is happening around us in the West and the East, because we do not live in special conditions. In Germany, for two years, minus 50% of construction after raising rates, minus 60% of home purchases with a mortgage. Thousands of bankruptcies. We just have to tell the Ministry of Construction: either they support it or we will follow the path of Germany and other countries. In fact, in the last two years of bankruptcies, the reduction in construction volumes is incredible.” – clarified the expert.
Alexander Sharapov also drew attention to the current practice in the US and China, according to which loans are provided directly to the developer himself, who receives financing at a preferential rate.
