By the end of 2023, the mortgage loan portfolio in Russia reached 18.2 trillion rubles, showing a record growth of 34.5%. This is stated monthly report “On the development of the banking sector of the Russian Federation” of the Central Bank of the Russian Federation.
The growth of mortgages was facilitated by government programs to subsidize interest rates, which accounted for approximately 60% of all loans issued. The regulator notes that citizens are actively investing in real estate in the environment of the weakening ruble and high inflation.
As a result, the volume of mortgage loans issued by banks in 2023 reached a record level of 7.8 trillion rubles. For comparison, in 2022 this figure was 4.8 trillion rubles. The previous record was recorded in 2021, when Russians took out 5.7 trillion rubles of mortgages.
Citing data from the last month of last year, the Central Bank said, “785 billion rubles of housing loans were granted in December 2022, which is 8% more than in November.”
Last week the Ministry of Finance of the Russian Federation appreciated budget expenses for the extension of concessional mortgages.
Previously, the head of the Central Bank predicted that the increase in housing prices in Russia would stop.