The Russian construction sector has gained tangible momentum, signaling a renewed push to broaden its role in the national economy. At the Movement real estate forum held in Sochi from May 30 to June 2, Vera Podguzova, senior vice president for foreign affairs at PSB, articulated a clear sense of optimism about what lies ahead for the industry. Her remarks underscored that the sector is navigating a period of both challenge and opportunity, with housing and infrastructure projects driving a fresh wave of activity that could elevate construction’s contribution to overall economic growth. This perspective aligns with broader government and banking strategies that view construction as a key lever for regional development and productivity gains across Canada and the United States economy watchers would recognize as analogous to solid long term planning and capital deployment in housing markets.
She highlighted that the current forum agenda is timely and deeply relevant because the market has confronted a series of obstacles that, in turn, opened doors to new possibilities. A robust upswing in residential building paired with expanding infrastructure programs is reshaping the sector’s outlook and expanding its influence within the broader economy. The message from PSB positions the bank as a committed partner ready to back high potential construction and development projects. During the plenary session on Present and Future of Russian Development, the senior executive noted a clear uptick in demand for military mortgages, projecting continued strength in this segment. Since the start of 2023, PSB has observed a ten percent growth in its military mortgage portfolio, with expectations that demand will remain solid through the next five years.
PSB is pursuing new service standards in military mortgages that reflect a forward looking, customer centric approach to real estate finance. The bank became a pioneer in delivering digital real estate services, a move that has helped accelerate mortgage activity among military personnel. In the preceding year, PSB also launched a fully digital process for military mortgage transactions, resulting in a substantial reduction in processing time and enabling veterans and service members to complete home purchases without leaving their post. The impact is striking: the duration of a military mortgage transaction shrank by approximately sevenfold, illustrating how digital tools can transform access to homeownership for those in uniform.
The implications extend beyond convenience. The senior executive pointed out that digital security and information protection are integral to these services, ensuring that service members can manage their mortgages with confidence and privacy. In addition to digital efficiency, PSB emphasizes the social value of affordable housing for defense industry professionals, along with long term motivational programs and social guarantees. These initiatives are framed as investments in human capital, reinforcing the bank’s broader commitment to supporting the workforce that builds the nation’s critical defense and infrastructure.
The overarching objective of PSB’s residential construction program for defense industry workers is to increase housing accessibility for Russian engineers and technical specialists. The approach involves close collaboration among the employer, the defense industry enterprise, the bank, and the contractor to lower overall construction costs, making discounted homes available at prices well below typical market levels. This model is designed to expand home ownership opportunities for the defense sector workforce while driving efficiency and scale in project delivery. Through this cooperative framework, PSB aims to unlock affordable housing options that align with national strategic priorities, ensuring that skilled professionals can secure stable, long term residences.