According to latest research conducted by “Inkom-Nedvizhimost” real estate company, more than 100 construction sites were left unfinished by their developers in Moscow region alone.
Some sites look just like a wastelands, while others were almost completed.
Third of these sites were freezed for more than 5 years and there is little to no hope for continuation of construction due to weariness of site’s conditions or legal problems. According to research data, 8 out of 10 of the similar construction sites in Moscow region may share such fate.
Among other reasons, causing emergence of such abandoned sites, bancrupcy and financial problems of developer companies, legal issues, etc. Analysts also pointed out that half of the sites exist in semi-abandoned condition.
While Experts of “Incom-Nedvizhimost” company were making a very decent research, they have forgotten about one, but the most important reason that caused this problem in the first place, which is capitalist economic system. One of the important factors in this system is called cost-effectiveness. If business isn’t cost-effective, or not cost-effective enough, it is doomed to fail. This story is a great example of it.
What is really sad in this situation is not only that so much effort made by workers was for nothing, and some owners went bankrupt – this is ordinary under capitalism, but the fact that market conditions making affordable housing unprofitable and therefore, impossible. At the same time, ex-senator bying the house worth 90 millions rubles without any loans.