The preferential mortgage program launched in Russia in the 2020 pandemic year has become a driver of rising prices for new buildings in the country. Over the three years of the program, the price per square meter of housing in the primary market increased by 82% to 141.2 thousand rubles. In this respect Wrote RBC with reference to CIAN data.
“If 1 square meter in April 2020. m of housing under construction now costs 77.5 thousand rubles – 141.2 thousand rubles. During the three years of preferential mortgages, the rise in prices was erratic. From April 2020 to April 2021, the increase continues at 32%, from April 2021 to April 2022 – 32.8%, from April 2022 to April 2023 – only 3.9%”.
According to CIAN, the price of “square” increased the most in Krasnodar, Samara and Omsk.
Domklik experts also noted that concessionary mortgages cause prices per square meter to increase in new buildings.
The preferential mortgage program was announced in Russia on April 16, 2020. It was launched during the pandemic as a crisis-fighting measure to support the construction industry. Another goal of the program was to make loans more accessible to Russians. Since then, the program has been expanded several times with changing conditions. Now the preferential mortgage rate is 8% per annum, the program is valid until 2024. Moscow, St. Petersburg, the Moscow region and the Leningrad region, the maximum loan amount under the preferential mortgage is 12 million rubles, and for all other regions – 6 million rubles. The maximum loan term is 30 years.