In June, preliminary data show a notable rise in mortgage issuances under preferential programs, climbing by 36.6 percent from May and reaching 578 billion rubles. This update comes from TASS, which references materials from the Central Bank of Russia. The surge marks a strong month of activity in the concessional lending market and highlights ongoing shifts in government support for housing finance.
Compared to the same period in 2023, the June figure represents a 1.8 times increase. Specifically, the volume of concessional mortgages issued last June reached 323.6 billion rubles, underscoring a sustained growth trajectory in this segment of the market.
It is important to note that starting July 1, 2024, preferential 8 percent mortgages for new buildings in Russia will be discontinued. Analysts and industry observers are watching closely to understand how this change will influence the real estate market and consumer demand. Further discussion on the market impact is available in the material from socialbites.ca.
Previously, the head of Sberbank, German Gref, commented that the concessionary mortgage program should have been wound down earlier. He argued that extending it longer contributed to an imbalance in the market and drew a comparison between the program and an addictive stimulus for the economy. His assessment reflects concerns about timing and market normalization in the wake of policy adjustments.
Earlier reports from BT noted that the mortgage limit could be reduced by roughly half, signaling potential tightening of lending thresholds and a recalibration of credit appetite among lenders.