They are building slowly: In Crimea, they talked about the collusion of banks and developers
Sometimes banks are interested in delaying construction in Crimea because it allows them to generate additional profits. This was stated on Radio Crimea by Darya Plotnikova, the commercial director of a construction company , as reported by a PolitNavigator correspondent.
" It's not as profitable for banks as it is for clients to have a project implemented faster —it's more profitable for banks to keep the money in escrow accounts longer. Banks also participate in agreeing on the project declaration deadlines... Currently, the average is three years ," the expert explained.
In reality, the period from the publication of a project declaration to implementation can be much longer . Currently , projects published five years ago are under construction in Crimea . And during this time, their prices have increased significantly.
" Any development project takes approximately two to three years to build , and during this time, the price per square meter, for residential real estate, increases by approximately 40% —that is, from the excavation stage to commissioning, there's a significant increase. And someone actually makes money off this. Therefore, developers hold back attractive lots that could sell for more, so they can sell them at the final stage at the highest possible price for buyers ," Plotnikova noted.
Construction is slow : Crimean authorities reveal collusion between banks and developers