Application of Project Financing Mechanism for Housing Construction for the Purposes of Improving the Quality of Life in Russian Regions

Abstract

Housing conditions and the possibility to improve them are one of the main indicators of the standard of living of the country’s population. State methods of regulation in this sphere must contribute to minimize the risks of citizens and ensure their safe investment in the purchase of housing under construction. For these purposes the mechanism of project financing — the system of financing the construction of apartment buildings through escrow accounts was developed and introduced.The subject of the article is an analysis of the introduction of escrow accounts in relation to Russian regions. The statistics presented by the financial development institution in the housing sector Dom.rf allows to detect a positive dynamics of citizens’ trust in development companies, which finally is reflected in a significant improvement of the quality of life of Russians. Thus, with the growth of citizens’ trust in contractors — developers of apartment buildings, their interest in buying better quality housing grows. Besides, the mechanisms of project financing weed out unfair builders, leaving only reliable developers on the market, which raises the qualitative characteristics of new projects and gives extra stability to the market.