In quarantine, some industries operate in an intensive mode, while others completely stop. But today it’s hard for everyone. The real estate and construction market is no exception. So what can the state do to reduce the negative impact of quarantine? The answer is very simple: do not bother!
The most important thing that the authorities, both local and central, can do is to stop creating difficulties. Sometimes it seems that people working in high and not very offices, directly commit themselves to do this. First they create a problem, then they wait for the outrage of the public or the market, after which they heroically cancel everything and report about the next reload.
Here are some recent examples of such pests in the construction industry.
Urban conditions and restrictions. We changed the rules for obtaining town-planning conditions and restrictions (now it is required to indicate the cadastral number of the site in the application) and actually blocked about 40% of all possible cases of issuing mystobudiv. How to deal with this until you come up with.
Reconstruction of the facility. So they fought with the raiders that now after the reconstruction of the object it is legally impossible to register the ownership right for it. Fighting raiders is good, but in fact they created a collapse of the system.
Equity participation. It’s hard not to get confused here: they canceled, under-canceled, made a transitional period with reduced rates, and then a new bill appears on its return. I won’t be surprised if they return it after quarantine as a way to fill the budget. Hi investment tax!
Therefore, to help the market, it just needs not to interfere. Having quarantined them, we are really waiting for a new reality – the beginning of a systemic economic, if not crisis, then stagnation. The long-awaited mortgage will not work, and people will not massively run to buy apartments and shop at shopping centers. But if you do not interfere with the projects being implemented, do not try to introduce equity participation, start issuing documents normally and then arrange access to large, but cheap loans, then the builders will support themselves until the economy is fully working and people start spending again money as before.
Andriy Ryzhykov, CEO and managing partner of the development company DC Evolution