Problems in the construction industry during the coronavirus pandemic and legal decisions of the state to support developers

Skvortsova Yulia S.

This article examines the problems that arose in 2020 in the construction industry, and the government's actions to support the development of the industry during the coronavirus pandemic. The author analyzed the statistical data on the development of the construction industry during 2020, as well as the main actions taken by the state to support construction companies and stabilize the residential real estate market. It was found that thanks to the preferential mortgage program, in June 2020, the demand for housing returned to the pre-crisis level, and in July - exceeded it, which kept the construction industry from falling and prevented massive bankruptcies of developers and the emergence of new defrauded equity holders in projects implemented without use escrow accounts with direct attraction of equity holders' funds. The recovery in demand for housing led to an increase in development activity and market stabilization. It was concluded that by the beginning of 2021, positive trends were outlined in the construction industry, primarily as a result of measures of state support for construction companies and an increase in demand for housing due to the introduction of a preferential mortgage program. Timely legal measures of the Government of the Russian Federation made it possible to support developers during the COVID-19 pandemic, there is an overall decrease in the number of developers' bankruptcies. At the same time, systemic problems associated with the transition to project financing will remain in the construction industry, which have a particular impact on the activities of small developers. A possible way out is the use of a phased disclosure of escrow accounts, as well as the development of an understandable and transparent methodology for determining the construction readiness of housing.

Keywords:pandemic coronavirus, crisis, market demand, government support, preferential mortgage.