Residents of Altai Region are burdened with over 200 billion rubles in mortgage debt
In the Altai Krai region of Russia, a shift has been observed in the real estate market and mortgage lending sector. After delaying their real estate purchases, bank clients have started depositing money into savings accounts.
This trend comes after the cancellation of the subsidised mortgage program, which took effect on July 1, 2024. The absence of this program has led some clients to postpone their property purchases. However, the market for mortgage lending has shrunk by half, and the price of housing remains high, with a price per square meter of apartments at 630 thousand rubles.
Despite the challenges faced by the Russian economy, which expanded significantly in 2023 but faced a recession and stagnation phase in 2025, the housing market in Altai Krai has shown resilience. The ongoing construction drive in Russia, aiming to build 1 billion square meters of housing by 2030, could support apartment supply and moderate price increases in regions like Altai Krai.
However, the overall mortgage lending market in Russia is pressured by stagnating household incomes and cautious credit institutions during the 2025 recession phase, limiting mortgage availability or increasing interest rates. In Altai Krai, mortgage rates on "general terms" range from 24% to 30%, while rural or family mortgages can have interest rates up to 6%.
Developers in the Altai Krai are focusing more on the quality of housing rather than quantity, which may contribute to maintaining the high prices. The interest rates on savings accounts in the Altai Krai have also increased, offering less attractive returns for those choosing to save rather than invest in property.
According to market analysts' forecasts, if the Central Bank's key rate decreases in the first quarter of 2026, mortgage rates will also decrease. This potential decrease could encourage more clients to enter the real estate market and stimulate growth in the mortgage lending sector.
In conclusion, the mortgage lending market and apartment prices in Altai Krai in 2025 are shaped predominantly by the national economic recession, inflationary environment, ongoing construction growth targets, and cautious credit conditions, with apartment prices likely stable or growing moderately depending on local demand and supply conditions. While the price per square meter is not being massively reduced, potential decreases in mortgage rates could encourage more clients to invest in property in the future.
- Given the rise in savings account interest rates in Altai Krai, some individuals might reconsider their personal-finance strategies, shifting from saving to investing in real-estate.
- With the potential decrease in mortgage rates predicted by market analysts for Q1 2026, the personal-finance landscape in Altai Krai could see an increased enthusiasm for investing in the real-estate sector, potentially boosting the mortgage lending market.
