The five largest Russian developers are increasingly delaying residential construction schedules due to financial problems. By the end of April, the share of projects delivered behind schedule had risen to 15.1% (2.43 million square meters). A year earlier, the figure was almost five times lower – only 3.2% (503,800 square meters), Izvestia reports, citing data from the Unified Developer Resource (EDR). Meanwhile, the number of problematic projects is growing rapidly – as recently as February, their share stood at 12.7% (1.95 million square meters).
Samolet has recorded the most delays, failing to deliver a third of its projects on time (1.66 million square meters out of 4.95 million). Just two months ago, delays were recorded at a quarter. At developer Dogma, the share of delays has also increased since February, from 3.1% to 8.7%. Some smaller developers are showing even worse results. For example, the Eskadra group of companies from Primorsky Krai and the A101 Group of Companies from Moscow are experiencing delays of about half their projects, while Metrix Development and Ava Group from Krasnodar Krai are experiencing delays of around 60%. At Seven Suns Development from St. Petersburg, all projects are being postponed.
Current indicators reflect the consequences of the industry's rapid growth in 2024–2025, when developers launched new projects and expected high demand, says Rigina Gordeeva, founder of the BezFiltrov real estate agency. According to her, most projects are currently sold out at no more than 60%, and financing costs have risen sharply, slowing the pace of construction. With the key interest rate at around 15%, any decline in sales worsens the project's economics, the expert noted.
"The high cost of credit and rising labor costs are putting pressure on the market. Developers are trying to avoid peak financial burdens and sometimes deliberately adjust construction schedules," says Yulia Bocharnikova, Executive Director of Etazhi. If the key rate doesn't fall below 13% by summer, the share of projects delayed by the largest developers could exceed 20% by the end of the year, according to Valery Tumin, Director of Russian and CIS Markets at Fam Properties. Delays of 15-20% could become the new market norm under the current financial conditions, Bocharnikova warned.
Deputy Prime Minister Marat Khusnullin, who oversees construction, previously stated that one in five construction companies in Russia is at risk of bankruptcy due to declining sales amid high mortgage rates. Earlier this year, Samolet approached the government with a request for a preferential loan of 50 billion rubles to stabilize its financial situation. However, the government refused the company, believing that it was not in a critical condition.
source: The Moscow Times [https://archive.is/VDlCq](https://archive.is/VDlCq)
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