In St. Petersburg, the secondary real estate market is seeing a sharp uptick in demand as mortgage costs rise. Local market observers point to higher borrowing costs as the driving force behind this shift, with news outlets noting the demand surge.
Valery Vinogradov, vice-president of the Union of Realtors of the St. Petersburg and Leningrad Region, reports that the flow of inquiries to real estate agencies has grown by roughly one and a half to two times. The decisive factor, he explains, is the window of opportunity created by mortgage programs that remain available under current terms. Following the Central Bank’s decision to lift the base rate from 8.5% to 12%, lenders have increased mortgage rates by about 1.5 to 3 percentage points, intensifying the urgency to secure a loan on favorable terms before changes take full effect [Source: Union of Realtors].
Pavel Lutsenko, Managing Director of the World of Apartments portal, adds that buyers are making faster decisions, often within a few days, rather than evaluating dozens of options over weeks. The aim is to lock in pre-approved mortgage terms while they are still advantageous. Dmitry Shchegelsky, head of the National Chamber of Real Estate, notes that partner banks of real estate companies are imposing tight deadlines for customers with pre-approved mortgages, aiming to complete purchases by late August or mid-September to retain old-rate conditions [Source: World of Apartments; National Chamber of Real Estate].
Industry analytics firm CIAN suggests that the typical monthly mortgage payment in St. Petersburg is likely to rise—from about 70,500 rubles to roughly 84,300 rubles, a substantial shift for household budgets [Source: CIAN].
Despite the current surge in activity for primary-securitized financing, there is an expectation that demand for second homes and overall prices may ease in September. Vinogradov points to a potential 20–25% reduction in supply and a 5% dip in prices, contingent on the Central Bank’s next policy moves regarding the interest rate [Source: Valery Vinogradov; Union of Realtors].
Recent communications to the market have highlighted what might follow a series of rate increases. Analysts and industry insiders continue to assess how elevated mortgage costs will influence buyer behavior, inventory levels, and pricing dynamics across the broader market.
Historical context shows that an unscheduled meeting of the Central Bank raised the key rate to 12%, a move that ripples through lending costs and consumer borrowing decisions. The full impact on affordability and transaction velocity remains tied to forthcoming policy decisions and lenders’ readiness to adjust terms for new and existing borrowers [Source: Central Bank of the Russian Federation; market commentary].