Anatoly Popov, Deputy Chairman of the Board of Sberbank, spoke at a developers conference titled Time for Change: New Challenges and Development Prospects in the Industry. He highlighted that last year a quarter of residential construction projects in Russia were completed ahead of schedule. Despite sanctions, price increases, and disrupted supply chains, about 60 percent of homes reached their planned timeline, while roughly 15 percent of projects faced delays. The message underscored a resilient sector that managed to stay on track even in tough times.
The long term viability of construction hinges on the reform of financing that began five years ago. A decisive move ended the practice of financing projects through buyers while using joint construction schemes. This shift introduced escrow accounts to safeguard buyers’ funds until the home is delivered, paired with project finance channeled through banks. The change reduced the risk of misallocation and increased the predictability of project outcomes. Housing construction moved toward a more secure financial model that relies on formal bank-backed arrangements rather than ad hoc, buyer-funded schemes.
Popov pointed out that under the previous joint housing construction model, banks rarely provided meaningful financing to developers, with their share in Sberbank’s portfolio standing at just two percent. With the new system, the share rose to 16.7 percent. In numeric terms, if the total bank financing for development reached 3.2 trillion rubles in the broader market, about 2.8 trillion rubles of that sum now flows through the escrow-based project financing framework. He projected that all ongoing capital construction projects would be completed by the year’s end, signaling substantial progress under the reform trajectory.
He emphasized that project funding enables on-time construction, a critical factor for buyers who want reliable delivery dates. Popov observed that last year was marked by restrictions and broken logistics chains, yet the construction pace did not slow down. Instead, developers accelerated their work, and the industry became more efficient, a development welcomed by buyers who received homes faster than before. This acceleration is seen as a meaningful win for the housing market and for lenders who support orderly project completion.
Looking ahead, Popov framed the financing reform as a cornerstone of greater transparency and higher confidence among home buyers and contractors. He argued that sustaining the current pace requires targeted solutions that support the industry during periods of waning demand and in regions where margins are tighter or costs are higher or household purchasing power remains strong. The overarching goal remains to maintain momentum while ensuring accountability and protections for all stakeholders involved in the residential construction process, even as market dynamics shift and regional conditions vary across the country.