The Central Bank has identified a real imbalance in Russia’s housing market, particularly between the prices seen in new buildings and those in the secondary market. This issue was highlighted by Svetlana Razvorotneva, a deputy chairperson of the State Duma Committee on Construction, Housing and Communal Services, during her remarks at the International Housing Congress. The observation appears in coverage from a leading Russian newspaper, noting that the regulator is watching price dynamics across market segments with careful attention.
Razvorotneva pointed out that while the Central Bank did not view the risk of a mortgage bubble as imminent, it did acknowledge a persistent gap between the cost of primary housing and the value of existing properties. In practical terms, apartments in new developments continue to command higher prices than pre-owned units, yet over a long period the secondary market has tended to appeal due to different timing and financing realities. Data from industry sources indicate that new-build prices are typically higher by a noticeable margin, even as buyers weigh ongoing maintenance costs, location, and potential for future appreciation.
Another dimension of the market imbalance concerns borrower quality. The financial regulator has observed that lending is increasingly extended to individuals who face constraints in meeting service obligations due to their overall financial situation. This shift raises questions about credit risk profiles, debt servicing capacity, and the long-term sustainability of mortgage portfolios under varying economic conditions.
A third facet involves marketing practices by developers, including offers resembling near-zero or highly favorable mortgage terms. In these schemes, the interest component is folded into the total housing cost, yet resales may not yield a price that covers the original outlay. The Central Bank has repeatedly warned against such arrangements, stressing a need for transparent terms and accurate pricing. Razvorotneva underscored that the current market rhythm is shaped by a tension between the interests of developers and the prudential oversight exercised by the regulator. The outcome of this tension influences affordability, credit accessibility, and the overall health of the housing market parity between new and existing homes.
There have also been discussions about extending privileges for mortgage borrowers, a topic that has resurfaced in various policy debates. These conversations reflect broader concerns about housing access, affordability, and the balance between stimulating construction and maintaining financial stability. Analysts emphasize that any policy adjustments should consider both the immediate needs of buyers and the long-run resilience of lending frameworks, ensuring that support mechanisms do not distort price signals or risk assessments. (Source: Central Bank reports and parliamentary summaries).