Since loans have become expensive it makes more sense to raise money fo projects by selling off own reserves
This is an excerpt from an article that originally appeared at The Moscow Times
Swathes of land worth up to $1 billion could go on sale in the Russian capital in the near future as developers look to trade in land for liquidity, real estate consultants said.
The cost of financing construction projects has soared since the Central Bank last December hiked its key interest rate from 10.5 percent to 17 percent in an effort to halt a drastic slide in the value of the ruble.
The regulator has since lowered its rate to 12.5 percent, but financing remains costly, creating an incentive for developers with unused land in their portfolios to sell it off for cash.
Read more at The Moscow Times