For the first time in history, August 2022 marked a notable shift in Moscow’s mortgage landscape. Data from a major real estate analytics database tracked by CIAN showed that the average term for a mortgage in the primary market, excluding the New Moscow area, stretched to 300 months, which is 25 years. This figure surfaced in a report by Lenta.ru, which cited analysts monitoring rental and sale markets and the financing patterns of flat purchases. The lengthening of loan terms was interpreted as a response to borrowers seeking to lower monthly payments while maintaining access to housing in a market that had become increasingly expensive.
Experts based their calculations on Rosreestr records that detail transactions involving flats and apartments in new buildings and the corresponding mortgage durations. In Moscow city, the trend highlighted a deeper stratification by segment: the average loan term for mass housing rose to 305 months, or 25 years and three months; for business-class projects, the average extended to 289 months, about 24 years; and for premium-class residences, the term settled around 240 months, equivalent to 20 years. These numbers reflect how lenders and borrowers adjust to evolving price levels, income dynamics, and risk assessments as developers push into diverse segments of the housing market.
Within the New Moscow area, the pattern persisted with longer loan horizons. Mortgages for houses under construction were taken out, on average, for 310 months, roughly 25 years and 10 months. In the broader Moscow region, the average term reached 312 months, or exactly 26 years. Analysts noted that the extension of repayment periods was often a deliberate strategy by borrowers to manage monthly cash outlays in the face of rising property prices and tighter household budgets.
The rise in average repayment periods documented by CIAN was commonly linked to a preference among borrowers to reduce the burden of monthly payments rather than to a change in overall housing demand. This shift can influence borrowing behavior, with more buyers prioritizing affordability in the near term while still targeting longer-term ownership prospects. Lending institutions respond to these dynamics by offering a range of mortgage products that blend longer maturities with fixed or inflation-linked rate structures, enabling more predictable monthly commitments for a growing share of buyers.
In early September, the Bank of Russia released information indicating that the average rate on new mortgage loans extended to Russian consumers by credit institutions had risen. The rate increased by 0.31 percentage points, moving to 6.67 percent from 6.36 percent in June. This uptick in rates occurs alongside the movement in loan terms and reflects a broader tightening of credit conditions that accompanies shifts in monetary policy, inflation expectations, and the financial environment. For prospective homeowners, this combination of longer loan terms and higher rates translates into carefully weighed decisions about how much to borrow, where to buy, and what type of property best aligns with long-term financial plans. The interplay between term length and rate levels remains a central element of mortgage market dynamics in Moscow and the surrounding regions, shaping affordability, demand, and the pace of housing construction across different market segments.