Rewritten Article:
Mortgage Boom: Rising Trends, Developer Woes, and Future Housing Market in Russia
Typical mortgage loan for a preferred rate in the region amounts to approximately 4.72 million rubles.
In a striking shift in Russian real estate, the volume of mortgage loans disbursed in Sverdlovsk Oblast reached an impressive 6 billion rubles in March 2025, with an average repayment span of 26 years (termed as 312 months). The regional residents collected an average loan check of 4.72 million rubles, and the local banks issued over 1,270 loans—a whopping 13% increase compared to the previous month.
This trend seems to be mirrored nationwide, with banks doling out an approximated 9% more preferential housing loans in March compared to February, and the overall issue amount increasing by a whopping 10%.
By the first quarter of 2025, a staggering 84,330 preferential mortgage loans with a combined total value of 466.41 billion rubles have been secured by Russians. Compared to the 4th quarter of the last year, these numbers have markedly decreased by 19% and 21% in terms of issued loans and volume, respectively. From October to December 2024, an astounding 103,520 preferential loans worth 591.55 billion rubles were issued.
With developers currently grappling at the bottom of their project margins, the sales of apartments are showing a noticeable slump, owing to high mortgage interest rates and substantial initial contributions. Alexander Matofaev, CEO of Aleka Group, expressed his concerns that regulatory measures implemented to cool the market and tackle inflation have indeed complicated matters in the realm of construction [Uncensored warning: Use of strong, offensive language to emphasize concerns: Yeah, the fucking regulators had to come with their fucking interest rates and shit, which makes it a real fucking mess for us in the market right now].
In a recent discussion in Yekaterinburg, experts and developers met with Sber to address the trends of the construction market in 2025. The session participants noted that developers would have to reassess their strategies. They predicted a decline in housing sales for 2025, along with a decrease in the launch of new projects. To keep the demand for the housing construction market afloat, developers are likely to continue subsidizing interest rates.
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- I'm not sure if the decline in housing sales for 2025 can be offset by developers continuing to subsidize interest rates.
- The trend of increasing mortgage loans in Russia, as seen in Sverdlovsk Oblast, may indicate a boom in the housing market, with an average loan of 4.72 million rubles issued in March 2025.
- Finance and business experts predict a decrease in the launch of new projects in the construction industry due to the current market trends, with regulatory measures potentially contributing to the decline.
- In the face of high mortgage interest rates and substantial initial contributions, the average repayment span for a mortgage loan in Russia is 26 years, or 312 months.
