The number of citizens purchasing country houses in Russia may increase by 10-15 percent by the end of the first quarter of 2024, that is, until March. This estimate was given to socialbites.ca by the press service of the construction company Dachny Season.
They announced that Russians’ demand for country houses increased by 10 percent in the last quarter of 2023 compared to 2022, and similar growth rates are expected this year.
The five consecutive increases of the key interest rate to 16 percent on December 15, 2023 and the increase of the down payment in preferential mortgage programs to 30.1 percent made it difficult for many Russians to buy a house.
“The figures are not final and the industry expects them to increase, because if the dynamics of the Central Bank’s response to economic changes continues, the interest rate may increase by an additional 1-2 points as early as February 16, 2024. Considering that the vast majority of country houses in our country are built with a mortgage “Given that such market realities may negatively impact demand – not all consumers will be able to afford to purchase and build such real estate,” he said. Digitalization of Dachny Season insurance company Lutovinov.
However, the expert concluded that for people who have saved 30% on the down payment, concessional mortgage programs (at 6-8% per annum) will continue to be an attractive option for building a house.
According to Avito Real Estate, Russians’ summer house demand decreased by 10% in 2023. On average in Russia, from the beginning of 2023 to the end of December, demand for suburban housing increased by 1%. Russians’ interest in city houses increased by 7 percent and in residences by 5 percent. Demand for summer houses decreased by 9%.
Before that socialbites.ca saidPrivate house construction in Russia may become more expensive at the beginning of 2024.