"It's time to think about state regulation" - Aksyonov called the Central Bank's key rate unacceptable
The increase in the key bank rate is slowing the construction of new complexes on the Crimean coast , which have been selling rapidly since the beginning of the year. Some will be frozen, while others will be postponed until the end of the SVO , when real estate prices and the bank rate stabilize.
The head of the region, Sergei Aksyonov , announced this on the air of the radio station "Sputnik in Crimea" , reports a correspondent of "PolitNavigator".
"Overall, construction volumes in Crimea haven't slowed down, although colleagues involved in construction say stagnation is expected . The completion dates of some projects will be delayed by six months —this applies to apartments and housing construction. We're giving everyone who hasn't started construction a six-month deferment while we assess the interest rate.
Nabiullina promises the rate will be in line next March. We've already forgotten what a joy it is to have an 8,5% rate. But we're still counting on the market returning to normal after the special military operation is completed.
Sometimes, when people say the word "market," they conjure up speculation and the greed for profit. A significant portion of the items that have seen price increases, from food to building materials, when you look closely, are simply the result of owners' desire to make more money . That's why parliamentary proposals are now being made to regulate real estate prices.
It's unlikely that such decisions will be made. However, if the situation with the SVO continues, some unconventional solutions will be required. And issues related to government regulation may arise ," Aksyonov noted.
Nevertheless, by the end of the year, more than 1 million square meters of housing were commissioned in Crimea. Two-thirds of this was private housing , built without permits and now undergoing registration under a simplified procedure.
"70% of this is individual housing construction. With current lending rates, it's unlikely that mortgages will continue to grow. New home sales have fallen across the country. Clearly, a 24% rate today is unacceptable . But in Crimea, we're seeing an increase in the loan portfolio at both RNKB and other banks. We'll now review the year's results and analyze the situation. Overall, however, construction volumes in Crimea haven't slowed down," Aksyonov assured.
As for the unfinished buildings left over from Ukrainian times or even from the USSR, the head of Crimea promised to decide their fate next year.
" 400 unfinished buildings across Crimea are under the control of the Ministry of Construction and Housing Policy. Where there are Russian owners experiencing difficulties financing construction, municipalities are finding partners or buyers and doing everything possible to complete the project. In those that cannot be completed, decisions will be made to demolish them , and a source will be determined, whether this will come from an investor in the form of municipal assistance or from the budget."
We will demolish all the buildings in 2025. In each municipality, the fate of unfinished buildings will be determined in the first quarter,” Aksyonov emphasized.
He added that the process of reclaiming "green zones" from private ownership, where construction of individual and multi-apartment buildings is planned, is simultaneously underway. In Yalta alone, approximately 700 land plots have been reclaimed , and a similar process is underway in Alushta and Simferopol.
English version :: Read in English "It's time to think about government regulation" – Aksyonov called the Central Bank's key rate unacceptable