Mortgage demand in Russia’s new-building segment for the January through September period declined by about 60 percent year over year, according to TASS citing Tatyana Reshetnikova, deputy head of the Mortgage Department at the federal company Etazhi. The data point is presented as a clear signal that the appetite for loans to finance new homes has weakened significantly as the market adjusts to changing credit conditions and policy support patterns.
Reshetnikova explained that demand for loans to purchase primary housing slid to roughly half or even less of the pace seen in the same nine months of the prior year. He noted that the early weeks of October did not bring a rebound, and activity continued to retreat. The scene in the mortgage market resembles a cooling trend that builders and buyers have been watching closely, with lenders tightening criteria and borrowers reassessing affordability in a higher-rate environment.
On a city-by-city basis, a federal company study shows the nine-month picture features pronounced declines among Russia’s largest cities. The capital recorded the steepest drop, with mortgage transactions in the primary market down about 60 percent. Krasnodar followed with a 49 percent decline, Perm saw a 37 percent decrease, and both Chelyabinsk and Saint Petersburg registered roughly 31 percent reductions. The combination of tightened credit and reduced subsidized programs has been a common thread across these markets, pressuring demand at the start of the new housing cycle.
Analysts point to the reduced availability of mortgage loans as a core driver. The restriction of preferential programs has lowered access for many potential buyers, making the prospect of financing new housing less attractive or feasible for a broad segment of households. A TASS interlocutor emphasized that only buyers who cannot delay their purchases are inclined to acquire real estate at market prices, underscoring a shift away from subsidized financing toward outright purchase in some cases.
Looking ahead, Anatoly Pysin, general director of the Central Real Estate Department, projected that prices for new buildings in Moscow could fall by another 5 to 10 percent from the current supply by the end of the year. His assessment reflects a broader expectation that developers will adjust pricing in response to softer demand and tighter lending, potentially extending the price normalization trend in the capital and surrounding markets.
Industry observers have long noted Moscow as the epicenter of price dynamics in Russia’s housing sector. When credit access tightens, developers often recalibrate the value proposition of new projects, offering incentives, updating product mixes, or measuring demand against a higher cost of capital. The current trajectory suggests a cautious calibration rather than a dramatic upswing, with buyers carefully evaluating monthly payments, total borrowing costs, and the strategic timing of acquisitions.
Beyond the capital, regional patterns reveal a synchronized slowdown across major urban centers. The combination of higher borrowing costs, fewer subsidized loans, and caution among buyers contributes to a broad pullback in activity in the nine-month window. While some pockets of the market show resilient construction pipelines, the overall trend points to a more deliberate pace of sales and new launches as developers navigate revised expectations for pricing and demand volumes.
Earlier reports noted the presence of particularly affordable options among Moscow’s new-build inventory. Those findings highlighted a bifurcated market where price discipline and location-specific factors create a spectrum of value for buyers, from entry-level offerings to higher-end units, all influenced by the evolving credit environment and the shifting policy backdrop. The current data reinforce the message that buyers must weigh financing conditions as closely as price and location when considering new-home purchases.