Incompleteness of information on the housing market under construction

Abstract

The article analyzes the contradictions that have developed in the modern market for shared construction associated with the introduction and implementation of escrow accounts. The regulatory system that has developed in Russia by 2020 does not solve all the problems of incomplete information when deciding on the purchase of housing. It is shown that the development of the market for housing under construction and more effective participation of citizens in shared construction are constrained by the incompleteness of information that remains in the Russian primary real estate market — an insufficient level of knowledge about the construction object, the existing mechanisms of financial guarantees for the fulfillment of obligations by developers and about credible sources of information about their activities. It is assumed that this “market failure” should become the subject of state regulation in terms of creating modern information resources and a task in the policy of increasing the financial literacy of the population. The presence and influence of incompleteness of information among citizens — potential buyers of real estate in terms of insufficient information about the object and possible tools for protecting investments in new construction — are proved, mechanisms for overcoming the incompleteness of information are proposed. It was found that in modern Russian conditions, the continuing incompleteness of information among buyers in the shared construction market, and the dominant position of developers contributes to the preservation of citizens’ distrust in equity participation instruments and prevents the achievement of strategic goals for the provision and affordability of housing.