The results of cancellation of privileged mortgages became clear 05:25

The abolition of concessional mortgages at a rate of 8% sharply reduced Russians’ demand for loans for housing under construction. In June 2024, 47% of all loans issued in the country were for the purchase of housing in new buildings, but a month later this figure fell by almost 2.5 times, to 19%. These statistics were provided to socialbites.ca by KEY CAPITAL CEO Olga Guseva.

After the abolition of preferential mortgages, the maximum share of loans for housing under construction was recorded in July in the Khabarovsk Territory – 35%. Primorsky Krai (33%) came in second, followed by Kalmykia (31%), Yakutia and Adygea (30%). At the same time, the minimum share of such loans was issued in Tyva (5%), Chechnya (6%), Vologda region (9%), Karachay-Cherkessia and Altai (11% each).

In Moscow, the share of mortgage loans for shared construction decreased from 57% to 30%, and in St. Petersburg from 54% to 26%.

The decrease in the share of housing loans under construction after the abolition of concessional mortgages (from 46% to 29%) occurred even in the Far East, where the Far East mortgage program operated at 2%. The figure remained at the maximum level compared to other federal districts.

“The dynamics of the share of loans to participants in joint construction show how significant a role privileged mortgages play in the housing market in Russia. In many regions, for the first time in history, buyers of new housing under construction took out more loans than buyers of existing ones. However, this figure has fallen to its lowest level in recent years. This means that the housing market needs to be rebuilt, and family mortgages will not be able to fully compensate for the abolition of privileged mortgages,” Guseva concluded.

The use of preferential mortgages in Russia was stopped from July 1, 2024.

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