Погода
56.99 64.15
28 Октября 2017
Foreigners

A Boomerang Effect

A Boomerang Effect
Источник фото: cian.ru

Krasnodar, 28 October – Yug Times. The construction industry is facing drastic and extremely unpleasant changes that may strike a crushing blow on both the developers and the buyers of homes.

The Federal Law No. 218 on protection of rights of the participants of construction under shared ownership terms in case of bankruptcy of the construction companies, enforced last August, strongly affects the Law No. 214 that regulates the work of companies at the market of newly-constructed homes, amendments to which are to be enforced next July. By these laws, the legislators increase the financial burden on the constructors and restrict their activities.

Then the market will change beyond recognition. First, the small companies that for a long while been spoiling the reputation of the industry will have to abandon the market. But the second and most important thing is that the companies that remain in the market will have to work by the rules that put at stake the entire construction business. Even the gigantic companies with immaculate reputation and distinguished authorities will become endangered. So for many participants of the construction market, the diagnosis may become lethal.

There are four factors that may change the market radically. The first factor is deterioration of business conditions for the developers and, as a result, rise in the cost of a square metre. The second factor is the legalized purge of the market, which only half of the companies will survive at the best. The third factor is a rapid drop in the construction volumes. And the fourth factor is permanently high demand for the homes. The prices will inevitably jump up — and it will happen in the nearest future.

For the time being, the developers have not reacted to the changing rules of the game. Many of them are addressing the State Duma and Federation Council hoping that the MPs would think better of it and change their minds. But in a month or so, they will understand that these populist bills will remain in force.

And then a real apocalypse will happen. Few will survive. The only way-out for the construction companies will be to raise the prices.

Читайте также:

Natalia Natan’s Conquest of the World
15 Июня
Foreigners

Natalia Natan’s Conquest of the World

The Yug Times weekly announces the beginning of our annual contest Triumph.
Human Capital: Futurity of Society, Business Depends on Development of HR-Environment
15 Июня
Foreigners

Human Capital: Futurity of Society, Business Depends on Development of HR-Environment

The event was held in the framework of the program “Time for new strategies - 2018”.
Crimean Bridge as Main Stimulus to Attract Tourists
14 Июня
Foreigners

Crimean Bridge as Main Stimulus to Attract Tourists

Our experts have evaluated the prospects of the new summer season in South Russia.
Krasnodar Mayor Wishes Good Luck to Spanish National Team
14 Июня
Foreigners

Krasnodar Mayor Wishes Good Luck to Spanish National Team

Many local football fans came to see the glorious team.
Beriozki (Birches) Spa: For Mind, Spirit and Body
14 Июня
Foreigners

Beriozki (Birches) Spa: For Mind, Spirit and Body

Our guest Yulia Sipiagina, Director of the Beriozki Spa Hotel, recounts the story of her company.
Cossack Ataman’s Lifework
14 Июня
Foreigners

Cossack Ataman’s Lifework

“The Cossacks’ mighty spirit was born by our faith,” says Klimenko.
21:40 В Краснодаре на ул. 3-я Линия Нефтяников запретят стоянку автомобилей 21:28 На Кубани урожай клубники составил около 500 тонн 21:16 Сборная Бельгии крупно обыграла Панаму в матче ЧМ в Сочи 18:45 Экс-капитан ФК «Краснодар» Гранквист обеспечил победу сборной Швеции в матче ЧМ 18:14 В Краснодаре на Гидрострое ночью отключат воду 17:59 В центре Краснодара в ночь на 22 июня временно ограничат движение 17:16 Краснодар присоединится к патриотической акции «Свеча памяти» 16:53 Мэр Краснодара поручил вернуть горожанам дорогу по ул. им. Симиренко 16:46 В Сочи рассказали о работе волонтеров на ЧМ-2018 16:17 ВТБ финансирует деревообрабатывающее производство в Удмуртии