New Law Boosts Real Estate in Krasnodar Krai, Protects Residents
A new law has come into force in Krasnodar Krai, aiming to boost the real estate market and protect residents. The law, which focuses on the construction of residential buildings using escrow accounts, was enacted on March 1, 2025. Bank 'DOM.RF' is now responsible for issuing loans and managing the escrow mechanism.
The new law is expected to improve the quality of construction services and increase trust in developers. It simplifies interactions between customers and builders, eliminating the need for additional checks by state bodies. The law also ensures the funds of Krasnodar Krai residents are protected and that contractors only receive money after fulfilling their obligations. Currently, over 19,000 sq. m of individual houses are being built with the support of Bank 'DOM.RF'. Krasnodar Krai ranks sixth among Russian subjects in terms of approved limits and issued tranches for individual housing construction.
Igor Fedosov, acting head of the construction department of Kuban, believes the new law will make home buying safer and more transparent. The use of escrow accounts also makes financial transactions safer, positively affecting the reputation of the construction industry. The law's mechanism ensures that contractors receive money only after confirming the fulfillment of their obligations, with funds used exclusively for their intended purpose.
The new law on the construction of residential buildings using escrow accounts is set to transform the real estate news in Krasnodar Krai. By protecting residents' funds and ensuring contractors meet their obligations, the new balance of power in the market aims to increase trust in developers and improve the quality of construction services. With Bank 'DOM.RF' now managing the escrow mechanism, the stage is set for a more competitive and transparent construction market.
