Assessment of the Impact of Project Financing on the Housing Construction Market

This research aims to study the housing construction market in Russia. In view of the latest changes in the legislation governing this area the research topic is highly relevant. New amendments imply a complete refusal from shared-equity construction of multiple dwelling buildings and transition to a new form of funding. Such changes are aimed to protect the consumer from fraud by unscrupulous developers who are quite common in the market; however, it is important to find out how these changes will affect the construction companies and the market in general. Most of the discussions on this topic aim to identify the reform’s downsides that both developers and buyers may face. The aim of the study is to examine possible problems in the construction industry in transition to project funding, with the main problem being an inevitable rise in housing prices. To test this hypothesis, econometric modeling is used. It includes both data on the formation of the housing prices before the transition to a new form of financing and after the reform. For regressions, the data on per square meter price of one of the regional construction companies is used. The result of the work is to identify particularly urgent problems in the period of transition to a new form of funding, as well as to draw conclusions from the resulting models.