The possible decision of the Russian government to cancel the mass issuance of concessional mortgages for new buildings and expand the program only in regions with low demand after July 1, 2024 is correct. In this respect kp.ru said Konstantin Aprelev, Vice President of the Russian Association of Realtors.
“As for the end of concessional mortgages for the purchase of new buildings, now is the time, as they say. This program was implemented to support the construction industry during the pandemic. Today this is no longer so true, especially as the prices of new buildings have increased by 40-60% due to low mortgage rates. The expert noted that reducing the program would not pose a threat to the new building market.
He called for attention to secondary housing. In his opinion, if concessional mortgages for new buildings are canceled, it would make sense to extend the targeted benefits to the purchase of housing on the secondary market in regions where new buildings are not being built.
Russian Deputy Prime Minister Marat Khusnullin previously aforementionedHe said authorities were working on alternative mechanisms to mortgages to increase housing affordability in Russia. For example, the possibility of selling the house in installments and leasing issues. The Deputy Prime Minister cited Tatarstan and Bashkiria as a positive example, where citizens have the opportunity to purchase housing in installments or through the mechanism of savings and loan banks.
Previously in Russia accepted decrease in mortgage issuance volumes.