Sberbank Exec Reveals Real Estate Market Insights at Moscow Startup Summit
Alexander Vedaihin, First Deputy Chairman of Sberbank's Executive Board, spoke at the Moscow Startup Summit, revealing insights into the real estate market and developer strategies. The event, held in Moscow on October 1-2 at SberCity, brought together innovators, investors, and representatives from Russia, BRICS, and SCO countries.
Vedaihin discussed the use of escrow mechanisms and Public Investment Funds (PIF) financing by realtors to manage investment programs and construction timelines. This approach helps navigate low sales periods, as seen in the current market balance between supply and demand due to decreased realtor activity.
High interest rates affect projects with low debt coverage by escrow funds. However, a decrease in mortgage interest rates is expected to stimulate buyer activity, supporting realtors. Experienced real estate developers and project managers skilled in financial risk management and secure funding strategies are effectively using these mechanisms.
Sberbank's portfolio for housing financing has grown by 24% this year to reach 6.6 trillion rubles, despite concluding about a third fewer credit agreements compared to last year, mainly bridge loans. The Moscow Startup Summit provided a platform for discussing these trends and strategies, highlighting the importance of innovative financing methods in the real estate sector.
