... Accessibility. Families planning to purchase housing under the preferential program are now forced to consider mortgages under standard terms, making housing less accessible. Increased rates raise monthly payments, meaning that not everyone can afford a mortgage under current conditions. Growth of Alternative Solutions. With the suspension of preferential programs, borrowers are beginning to explore alternative options, such as rental housing or purchasing smaller properties. This shift is also stimulating demand for other credit programs ...

... than the 2023 level. The main factors were preferential programs, rising land prices and construction. How government support affects the mortgage market, and what prospects await Russians in the coming years - read in our new analytical material. Growth of Average Mortgage Loans for Country Real Estate in Russia: Reasons, Trends, and Prospects Growth of Average Mortgage Loans: Key Data Since the beginning of 2025, Russia has observed an increase in the average size of approved mortgage loans for country real estate....

... at 7.5%, creating a risk of significant depreciation of savings. For many, investing in real estate becomes a protective measure, as property values generally increase in line with inflation. 2. Comparison of Interest Rate Growth With Housing Price Growth The average mortgage rate in October 2024 is 13.2% per annum, which is over 2% higher than the previous year. Meanwhile, the rate of growth in property prices in Moscow and St. Petersburg averaged 9% since the beginning of the year, with some other regions, like ...

... of banks' mortgage portfolios is expected to grow by only 3–6% in 2025 (forecast down from 3–8%). Government-supported subsidy programs continue to support housing loans, but their impact is no longer as vast as during the period of double-digit mortgage growth. Demand for new housing loans has cooled against a backdrop of high borrowing costs and rising real estate prices. It is anticipated that the reduction in interest rates will gradually revive all segments of the credit market. By the end of the ...

... investment avenues during times of rising household prosperity. Higher wages improve housing affordability: more families can save up for a mortgage down payment or expand their budget for buying property. In the short term, high interest rates make mortgages costly, but the expectation of future rate cuts, combined with income growth, sets the stage for an upswing in the housing market. In the medium term, demand for housing is expected to increase, and the market for new developments should revive as household purchasing power rises. Investment in property – whether buying ...