Property price increase by 15-20%, over one third of developers will go bankrupt – these are the consequences that are expected to be true after the new law on owner’s funding of construction projects will come into force.
St Petersburg hosted a meeting dedicated to new law on owner’s funding of construction projects that will come into force on July 1.
This law states that:
- Company that is in charge of construction works, is to have experience of at least three years working in this sphere;
- One permission gives a right to construct only one building;
- If a developer doesn’t pay taxes on time, this developer will be considered as an infringer. In this case, those who funded may ask their money back.
The government of St Petersburg suggested that these changes may cause stagnation in the development industry. The participants of the meeting offered to give an opportunity for developers to receive several permissions, have several accounts and allow them to work until the judgment decision is made.
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