There are expectations that more people in Russia will purchase country houses, with projections suggesting a 10 to 15 percent rise by the end of the first quarter of 2024, which means up to March. This outlook was shared with socialbites.ca by the press service of the construction firm Dachny Season.
The company noted that demand for country homes rose by about 10 percent in the last quarter of 2023 compared with the same period in 2022, and it anticipates a similar pace of growth through the current year.
The trend comes against a backdrop of tighter lending conditions, including five consecutive increases in the key interest rate, which climbed to 16 percent on December 15, 2023, along with a higher down payment requirement in preferential mortgage programs to 30.1 percent. These moves have made financing more challenging for many prospective buyers.
Analysts caution that the figures are preliminary, with industry experts warning that upward momentum could sustain if the Central Bank continues to adjust monetary policy in response to evolving economic conditions. There is speculation that the rate could rise by an additional 1 to 2 percentage points as soon as February 16, 2024. Given that a large share of country houses in Russia are purchased with mortgage financing, such shifts may dampen demand as affordability tightens for many households. This assessment was provided by the insurance division of Dachny Season, represented by the analyst Lutovinov.
Nevertheless, the same expert noted that for buyers who have already secured a 30 percent down payment, concessional mortgage programs offering rates at 6 to 8 percent per year will likely remain an appealing option for building a home.
Data from Avito Real Estate indicates a mixed picture: Russians showed a 10 percent drop in demand for summer houses in 2023, while overall suburban housing demand saw a modest increase of about 1 percent from the start of 2023 through December. Interest in city houses rose by roughly 7 percent, and residences by about 5 percent, whereas demand for summer houses declined by around 9 percent. These shifts illustrate a diversified pattern in residential preferences across the country, with some buyers prioritizing traditional city living while others pursue suburban or countryside options.
Earlier reports from socialbites.ca suggested that private house construction in Russia might become more expensive at the start of 2024, potentially influencing the pace of growth in the market. Industry observers emphasize that affordability, financing terms, and the evolving regulatory landscape will continue to shape how and when buyers decide to invest in country properties. The overarching message remains that mortgage-accessible buying remains a critical driver for a substantial portion of demand, particularly for buyers who can meet larger down payments while navigating rising borrowing costs.