Housing Construction Financing Strategy: Opportunities And Risks

Sternik, S. G.; Teleshev, G. V.

doi:10.15405/epsbs.2020.03.162

Cited by 2 publications

(4 citation statements)

References 6 publications

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“…We build our analysis on our previous findings on government regulation and housing financing strategy [15], banking sector stability as it relates to real estate markets [16] as well as our previous findings on prospects of reaching goals set forth in National project "Housing and urban environment" [17]. However, we widen our scope to include resulting regional distribution of government support measures for housing sector to understand how they correlate with the existing housing sector spatial structure and draw conclusions with regards to reaching goals of National project "Housing and urban environment" [11].…”

Section: Methodsmentioning

confidence: 99%

Socio-economic Aspects of Intra-regional Distribution of Government Support of Housing Construction Industry

Sternik

Teleshev

2020

Lecture Notes in Networks and Systems

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The article discusses interrelationship between government support measures to multi-family housing construction industry (MFC) implemented by the government of Russian Federation during the crisis and potential socioeconomic effects of such support as well as the prospects of reaching the goals of the National project "Housing and urban environment". Our hypothesis regarding the levels of support measures for housing sector for different regions is that it needs to be synchronized with the size of the clusters (defined as Russian regions or subjects of Russian Federation) and their respective forecast of economic development. Based on our analysis, we conclude that this requirement is not fulfilled, which results in skewed support for housing construction companies (and their projects) in only a handful of Russian regions thereby posing risks of reaching goals of National project "Housing and urban environment". We also expect that the government will continue expanding the measures of housing construction support with a potential of an increased housing sector centralization.

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Section: Methodsmentioning

confidence: 99%

Socio-economic Aspects of Intra-regional Distribution of Government Support of Housing Construction Industry

Sternik

Teleshev

2020

Lecture Notes in Networks and Systems

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“…In the field of housing construction, processes of rapid concentration of business, namely the emergence of market leaders who have significant institutional advantages in comparison with other companies, in fact began only in the last one or two years following the reform related to the introduction of escrow accounts and the transformation of the Agency for Housing Mortgage Lending and the Russian Capital Bank into the joint-stock company DOM.RF 7 [11,12].…”

Section: Features Of Multiapartment Housing Construction As An Object Of Systemic State Support and Anticrisis Measures Of State Incentivmentioning

confidence: 99%

“…This category of market participants is characterized by difficulties in scaling up the business in comparison with the largest developers, especially in the context of significant institutional differences and the transformation of the institutional rent of developers into the institutional rent of credit institutions 11 . It is also necessary to take into account that a significant part of construction projects is characterized by low levels of debt coverage in case prices decrease (Fig.…”

Section: Limitations and Risks Associated With The Scale Of Development Business And Institutional Factorsmentioning

confidence: 99%

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Institutional Transformations of Russia’s Housing Construction Sector in 2020

Блохин

Sternik

Teleshev

2021

Stud. Russ. Econ. Dev.

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This paper shows the ongoing development of two key trends in Russia's housing construction sector: the strengthening role of the state and the formation of market leaders that control its privileged part. The latter are separated from the rest of the market by ever-deeper institutional barriers. These barriers arise due to "special" relations of such companies with the largest banks, their advantages in obtaining financing in the securities markets, better terms of interaction with development institutions, primarily JSC DOM.RF, PPK Fund for the Protection of Rights of Citizens Participating in Shared Construction, the Housing and Utilities Fund, with adequate access to the instruments of state guarantees, and other conditions provided by these institutions. It is shown that such an institutional mechanism provides the best conditions for achieving national goals in the housing sector. Conclusions are made regarding the risks and limitations in terms of achieving the goals of the National Project, Housing and Urban Environment, as well as the advisability of developing a strategy for transforming temporary anticrisis measures of state support into a long-term policy of public-private partnership and maintaining the multistructural character of the industry and market economy.

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Housing Construction Financing Strategy: Opportunities And Risks

Abstract: This is an Open Access article distributed under the terms of the Creative Commons Attribution-Noncommercial 4.0 Unported License, permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Cited by 2 publications

References 6 publications

Socio-economic Aspects of Intra-regional Distribution of Government Support of Housing Construction Industry

Socio-economic Aspects of Intra-regional Distribution of Government Support of Housing Construction Industry

Institutional Transformations of Russia’s Housing Construction Sector in 2020

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