Expert warns of continued bankruptcies of real estate developers in Russian regions

The series of bankruptcies of real estate developers in Russian regions will continue. This was stated to Izvestia on February 19 by Olga Khasanova, General Director of URBAN real estate projects, who assessed the recent decisions on the financial insolvency of companies.

"The sharp rise in the price of borrowed funds, on which residential complexes are built, puts small regional developers in the most difficult position. This was clear as early as the summer. These structures do not have such resources as top federal companies, their liquidity reserves are extremely limited, and therefore any slowdown in demand will be critical for them," she explained.

According to her, some small and medium-sized players will sell their construction business to larger structures (both local and metropolitan). With low margins and high risks, there is no point in keeping it.

"The disappearance of a few dozen or even hundreds of minority shareholders will be a tragedy only for their owners and employees. The industry as a whole will not be seriously affected, especially in conditions of lower demand. Larger structures will easily compensate for the resulting deficit, if it suddenly arises over time," Hasanova summarized.

What it costs them: bankruptcies of real estate developers have begun in Russia's regions

In which subjects developers faced financial difficulties

Earlier in the day, experts told Izvestia that the subjects with the most unsold housing may face difficulties. Thus, in Yekaterinburg, the former general contractor of PIK Group - Stroyproekt Group - was on the verge of bankruptcy; in Rostov-on-Don, SC Donstroy, which was unable to repay its debt to Sber, was declared bankrupt.