Developers supported the idea of phased disclosure of escrow accounts

At the real estate forum "Movement", developers identified three systemic problems that require the prompt intervention of regulators. The most urgent is the need for early phased disclosure of escrow accounts. On June 19, developers told Izvestia that they support the introduction of such a mechanism.

"The initiatives will significantly simplify the activities of all sides of the development market. Banks will be able to replenish their customer base, and developers will be able to choose the most favorable terms in a volatile market. The end user will receive a lower cost per square meter at the exit," the Etalon group's press service said.

Oksana Makeenkova, PR director of BEL Development Group, added that the company supports such a measure, but with clear criteria, for example, if the facility is at least 50% ready.

"This is not a withdrawal of funds, but a redistribution of cash flow within the project, which will allow developers to compensate for the ongoing costs of rising costs of materials, rising salaries and staff shortages," she said.

Initiatives aimed at increasing the flexibility and sustainability of the development business, especially in the face of current market pressures, high key interest rates and expensive project financing, will certainly benefit, Sergey Goncharov, CEO of Razvitie Group, confirmed.

"Early and phased disclosure of escrow accounts is not just a support measure, it is an important mechanism for the entire industry. This will also avoid delays related to financing, which is important for meeting the deadlines for commissioning facilities and fulfilling obligations to shareholders. Such disclosure of escrow accounts should be linked to the actual stages of the facility's readiness. This will preserve the trust of customers," he said.

Make corrections: the State Duma did not support the idea of early disclosure of escrow accounts

What initiatives have businesses come up with and what risks do they pose for home buyers?

In April, it was reported that after the introduction of mandatory escrow accounts for individual housing construction, from 20% to 40% of developers may leave the market. It was noted that the risk zone is primarily small and medium—sized players who do not have access to project financing. The principle of escrow accounts is as follows: the buyer or the bank deposits money, the credit institution freezes the amount until the house is delivered, and the contractor receives funds only for the finished object. This is convenient for shareholders, but burdensome for developers — they bear all construction costs from their capital or attract loans, servicing which increases the cost of construction by up to 20%.