Mortgage demand in Russia rose sharply after the Central Bank of the Russian Federation lifted the key rate by 350 basis points to 12 percent annually, just ahead of its September 15 meeting. Applications for loans to buy new housing surged by 113 percent, while loans for second homes grew by 8 percent and loans for suburban real estate increased by 18 percent, according to Izvestia, citing Sergei Zaitsev, Sales Director of the nationwide real estate firm Etazhi.
Other players in the market confirmed a rapid uptick in mortgage activity across Russia. Borrowers sought loans under more favorable terms, yet higher rates after the policy move made mortgages more expensive overall.
Zaitsev explained that a further incentive for buyers in the primary market would come from raising the minimum down payment under preferential housing programs from 15 percent to 20 percent. He also noted that the surge in demand contributed to higher real estate prices. In August, the average price per square meter in the primary market rose by 1.1 percent, while increases in the secondary and suburban markets ranged from 0.5 to 0.7 percent.
On September 15, the Central Bank raised the base rate by 100 basis points to 13 percent per year. Financial experts predict that effective mortgage rates could approach 15 percent per year as a result. Vladimir Shchekin, a developer in the RDD housing cluster in New Moscow, offered this forecast.
Yulia Kovalenko, Associate Professor at the department of Basic Financial Control, Analysis and Audit of the Main Control Directorate of Moscow, named after REU G.V. Plekhanov, echoed this view the day before in coverage for socialbites.ca. Kovalenko added that consumer loan rates could settle around 15.5 to 16 percent annually, while deposit returns might hover near 13 percent.
Earlier remarks by Elvira Nabiullina addressed concerns about misselling in the mortgage market, underscoring ongoing attention to consumer protections amid shifting funding conditions.