Developers’ project finance amount exceeds ₽6.0 trillion
The portfolio of loans issued to developers in 2023 Q3 expanded by 11% compared to 9% in the previous quarter. New projects launched over the quarter increased amid high sales to exceed both the level of Q2 and the area of commissioned housing.
As a result of high sales, funds in escrow accounts were up by nearly ₽1.6 trillion over the quarter, which is the highest amount on record. The balance of these accounts totalled more than ₽5.4 trillion, and the ratio of debt coverage with funds in escrow accounts rose from 81% to 86%, which ensures a rather low average credit rate of 5.6%. However, it will not be easy to maintain this coverage ratio as demand might cool down in the future.
More details on financing trends in equity construction are available in the review Project Finance in Housing Construction in 2023 Q3.