Russian mortgage debt reached new highs in May, surpassing 15 trillion rubles and marking a record level for household borrowings tied to home purchases. By the end of spring, the total stood at about 15.08 trillion rubles, according to a May monthly report from Central Bank analysts.
As of June 1, total mortgage obligations in Russia hovered around 15.078 trillion rubles. In early May, the figure was 14.742 trillion, illustrating a clear monthly increase. Central Bank statistics show that the Moscow area remains the region with the largest mortgage liabilities, closely followed by the capital’s surrounding territory.
Demand for new housing loans in the domestic market remains robust. In May alone, banks issued 157.8 thousand new housing loans, a 3% rise from April when 153.3 thousand were granted. The value of newly issued loan funds also climbed to 580.5 billion rubles in May, up from 566.1 billion in April, according to the Central Bank’s report.
On March 28, a deputy from the State Duma, Anatoly Aksakov, raised a point about mortgage borrowers potentially shifting debt to banks. He suggested that borrowers could manage debt transfer if a forced sale of a mortgage apartment does not fully cover the housing debt outstanding.
Earlier coverage by Kommersant highlighted that May saw record levels of debt across credit cards in Russia, underscoring the broader picture of rising household indebtedness alongside mortgage commitments.
Analysts note that the sustained growth in mortgage lending reflects a combination of steady demand for housing and ongoing funding activity from banks. While rising debt levels raise questions about affordability and household balance sheets, lenders have continued to extend credit at elevated paces, supported by favorable monetary conditions and competitive banking terms. Market observers emphasize the importance of monitoring mortgage-to-income ratios and regional differences, as Moscow and its environs continue to drive much of the lending momentum, with other regions showing varying trajectories. The interplay between loan capacity, home prices, and income growth remains central to understanding the trajectory of housing debt in Russia, particularly in the face of macroeconomic shifts and potential regulatory adjustments. [Source: Central Bank monthly report]