On the first of July, the residential real estate market started to work according to the new rules - now developers are required to sell apartments only through escrow accounts, not directly to buyers. The introduction of a new construction financing system will inevitably lead to a new format of communication between developers and banks. From now on, banks will not only finance development projects but also control the targeted use of the funds, as well as the timely completion of construction stages. While some experts fear that as a result of legislative changes the construction industry will become fully controlled by the banking sector, others claim that developers will receive a number of benefits from cooperating with banks in the form of steady financing, which will allow them to implement projects efficiently and on schedule.
What impact will the transition to project financing have on the real estate market?
What new challenges and opportunities will open to the stakeholders of the residential real estate market?
How will banks and developers communicate with each other? How will the transition to escrow accounts affect the redistribution of profits between the banking and construction sectors?