Russian real estate has been moving in tandem with currency dynamics, according to a deputy of the State Duma. Nikolai Arefiev argued that the rise in property prices across the country is tied to the fact that the dollar has become significantly more expensive. As a consequence, companies have had to pay higher prices for construction materials such as cement, bricks, and steel. This analysis was reported by lenta ru, a reference point in coverage of economic trends.
He pointed out that the Bank of Russia and the Russian government have reached a common view that housing costs are driven up by concessional mortgage programs that provide benefits to many Russians. The increased demand supported by these programs has translated into tighter market conditions and higher prices for housing overall. Arefiev emphasized that the credit stimulus is a key driver of the observed price trajectory in the housing sector.
The parliamentarian argued that the underlying factor is the value of the dollar. His reasoning is that Russian builders source most construction materials through transactions priced in the dollar, so exchange rate movements directly flow into material costs and, ultimately, into housing prices. This perspective highlights the chain from currency markets to product costs and then to the consumer price in the real estate market. The connection is seen as a reflection of how global financial dynamics shape local prices in Russia as well as in other economies with dollar-denominated trade components.
Previously, the governor of the Central Bank of the Russian Federation, Elvira Nabiullina, expressed concerns about the rapid growth of mortgage lending and its potential impact on housing prices and loan quality. She noted that the increase in mortgage activity could be accompanied by a deterioration in loan performance as households accumulate higher debt. This relationship between credit expansion and price stability has been a focal point for policy makers as they balance accessible financing with the health of the financial system.
Earlier in the year, the Central Bank took actions to tighten monetary policy, with a significant rate adjustment aimed at cooling demand and stabilizing inflation. Market participants watched closely as the central bank sought to ensure that mortgage growth did not outpace the economy’s fundamental fundamentals. The overall goal remains to sustain affordable housing options while preserving prudent lending standards for citizens and financial institutions alike. The dialogue among policymakers and industry observers continues to shape expectations for how much of the housing price movement is tied to monetary policy and exchange rate fluctuations, and how these factors will evolve in the coming months.