Siberian Builders

Construction and development companies are stiffer feel a lack of financial resources. Banks lend only to reliable and proven borrowers. The flow of money from private investors also dried up, and difficulty obtaining mortgages and deprived of this source developers. Necessary financial resources or ability to attract them is only in units, and experts predict is coming decline of market participants and increase the cost of one square meter. The situation in the Novosibirsk housing market merely reflects the general Russian problem. An acute shortage of funds, fencing requirements of banks to customers, developers and builders of the suspension of work at its facilities.

But all it is kept secret from the uninitiated. According to several leaders of the construction companies: lack of finance was created artificially, the money is, as the population as a banking sector, but still waiting the fall in property prices. Construction of residential real estate company financed from two sources: bank loans and funds from investors (shareholders). A number of companies had their own means or opportunity to raise funds mutual funds. The most popular means of financing construction projects in Novosibirsk was the means shareholders. According to market participants a few years ago to 70% of residential customers have been accumulated enough money to buy or sell the old house and buying a new surcharge. In 2008, the situation has changed and is about 60% of sales came from transactions involving mortgage money. Smaller construction companies are building only a few sites now found themselves in a difficult position, because experiencing huge financial problems.

Some of them freezes projects, someone goes to a variety of discounts to attract customers. The second most popularity among builders were bank loans. The dependence on this source of financing for companies ranging from 20 to 80% of all funds raised. But the lending freeze most of the construction industry small banks have limited this source of funding. Those banks that continue lending to the construction industry have tightened requirements for borrowers of the construction sector. Interest rates on loans may reach 18%, but this is not the limit and there are precedents, and 25% per annum. Also, banks have reduced the list of collateral. Do not take the unfinished objects and even handed in homes. According to some executives of construction companies Novosibirsk to the end of this year, do not expect a severe decline in house prices. The following year we can expect a sharp reduction of market participants and as a consequence of rising prices due to limited supply. Most companies were not prepared for the difficulties are either declared bankrupt or be sold to a larger and more stable companies.