The System of Developing the Primary Market of Residential Real Estate in Terms of Project Financing

Abstract

Analysis of the current situation in the primary market of residential real estate within the framework of the transition to new conditions for financing residential construction showed the need for the development of the primary residential real estate market. Based on the systematization of well-known information and the author's recommendations, the article proposes and substantiates a project financing mechanism using escrow accounts within the framework of the primary market development system in the new conditions of housing finance, all the components of the proposed mechanism are described in detail. The tools (administrative, economic), methods (variability in terms of the use of equity capital by the developer and replenishing escrow accounts in accordance with the stage of the project life cycle), forms of regulation (legislative, administrative-institutional, socio-economic), principles for the implementation of project financing (customization, completeness, algorithmization) for a comfortable transition to new financing conditions for all the subjects of the residential real estate market are specified. The proposed system for the development of the primary market will make the transition to new financing conditions more comfortable for all market entities: citizens, developers, banks and the state, which ultimately will lead to the achievement of the main goal: increasing the efficiency of the housing construction sector in the Russian Federation.