Cash transactions prohibition explained by the expert
Going Cashless: A New Era for Real Estate
Straying from the traditional cash transactions, especially in the real estate market, is not a new concept. It's all about transparency, shedding light on the origins and destinations of our hard-earned cash. But why do builders cling to cold, hard cash? Well, it's often where the shady, unethical activities, like bribes, lurk, explains our expert.
Despite moving toward cashless transactions, the prices in the real estate market are not expected to be affected, asserts Mikhail Beliaev. He points out that there are numerous factors that drive the soaring costs of property.
The buzz about banning cash transactions in real estate has been making waves since April 21, reports TASS. Svetlana Razvorotneva, Deputy Chair of the State Duma's Housing and Utilities Committee, hinted at the possibility of such a law being adopted by late 2025. The initiative is expected to be put forward by the end of June. The Russian Union of Real Estate Market Participants, including "Samолет плюс" and "Etagi," has backed this proposal, as TASS reports.
Bye-bye to black market real estate schemes? The proposed law, announced on 27 April 2025, aims to ban cash transactions exceeding 1 million rubles for real estate purchases in Russia. Real estate expert Oleg Bendrikov anticipates the bill will be submitted for adoption before the end of the year[2]. However, its impact on pricing is predicted to be minimal due to the prevalence of unreported cash transactions[2].
This move follows the Bank of Russia’s recent macroprudential measures, such as mortgage limits, reflecting a broader strategy to mitigate lending risks[1].
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- The Russian Union of Real Estate Market Participants, including "Samолет плюс" and "Etagi," has backed a proposal to ban cash transactions exceeding 1 million rubles for real estate purchases in Russia, as reported by TASS.
- Oleg Bendrikov, a real estate expert, anticipates that the bill banning large cash transactions in real estate will be submitted for adoption before the end of 2025.
- The move to ban large cash transactions in real estate follows the Bank of Russia’s recent macroprudential measures, such as mortgage limits, reflecting a broader strategy to mitigate lending risks.
- Mikhail Beliaev asserts that despite moving toward cashless transactions, the prices in the real estate market are not expected to be significantly affected by the ban on large cash transactions.
- Rosfinmonitoring, the Russian financial monitoring service, will likely be tasked with monitoring the implementation of the ban on large cash transactions in real estate, given their role in combating money laundering and illicit activities in the finance sector.
