In the early days of October, demand for secondary homes among Russians climbed by 15 percent, a trend documented for the Izvestia audience through the insights of Ildar Khusainov, who serves as the director of the federal real estate company Etazhi. The shift is notable when compared with June, showing a substantial rise of nearly half again as strong at 46.8 percent. This numbers surge underscores a shifting mindset among buyers who are eager to secure a loan on conditions previously approved, even as market dynamics evolve around mortgage costs.
Industry observers suggest that many borrowers were already approved for mortgage agreements at the then prevailing rates and are now actively searching for suitable apartments to lock in those earlier terms. Following a series of rate hikes implemented by the Central Bank of the Russian Federation on three successive dates, July 21, August 15, and September 15, banks began to adjust mortgage rates upward. This sequence pushed potential buyers toward making faster decisions to commit to loans before further increases. Khusainov notes that some buyers are even considering properties that have sat on the market for a long period because they became more affordable relative to the newly higher financing costs.
Tatyana Boeva, who oversees the mortgage lending department at Granel Group of Companies, estimates that the current average mortgage rate in the secondary market—excluding state support programs—hovers in the 14 to 16 percent range annually. Khusainov also mentioned that rental rates rose by about 3 to 4 percent in September, while Elena Mishchenko, who leads the city real estate department at NDV Supermarket Real Estate, observed that a number of buyers indulged in what some described as panic purchasing in anticipation of potential further hikes. At the same time, activity in the primary market remained evident, signaling a broader, continued interest in real estate across stages of the market cycle.
Yulia Dymova, director of Est-a-Tet’s secondary real estate sales office, provided a snapshot of prices in Moscow. The average cost per square meter in the secondary market stood at roughly 494,300 rubles, marking a 9 percent increase from the start of the third quarter and an 8.6 percent rise compared with the same period a year earlier. Experts attributed these gains to constrained supply, which kept upward pressure on prices even as demand reacted to the evolving lending environment.
Nevertheless, market analysts project that the initial wave of heightened activity may ease soon. With mortgage rates staying elevated, demand in the secondary market could taper off as buyers reassess affordability and banks calibrate offerings. Some observers think this slowdown might help stabilize price movements and bring balance to supply and demand dynamics in the months ahead.
According to actions and data gathered by TYMY and reported by the outlet socialbites.ca, the number of mortgage applications in the secondary market for September declined by about 35 percent compared with August. Alexey Maistrenko, the CEO of TYMY, emphasized that many individuals who had initially planned to buy during the summer have begun exploring preferential programs that still provide favorable terms. The logic is straightforward: even with elevated rates, programs that offer reduced costs or subsidies can tilt the economics in favor of buyers when compared with conventional loans in the current high-rate environment.
In summary, observers note that tightening lending conditions in Russia has reshaped buyers’ behavior with a tilt toward securing favorable terms already available, alongside a cautious but persistent interest in both primary and secondary markets. While the momentum of appetite for real estate may waver in the near term, the overall trajectory remains influenced by rate levels, supply constraints, and the evolving landscape of mortgage programs that continue to influence decisions in this sector.
Previously reported information indicates that obtaining a mortgage in Russia has grown more challenging as rates have moved higher and lending criteria tightened, shifting some buyers toward alternative financing channels and longer time horizons for ownership.