The February growth of Russia’s mortgage portfolio stood at 0.7%, following a 0.6% rise in January, according to preliminary findings published in the informational and analytical bulletin, “On the Development of the Banking Sector of the Russian Federation in February 2024” issued by the Central Bank of Russia.
Officials note that the overall trend aligns with the forecast in the document, which anticipates a market cooling of about 7–12% over 2024.
By the end of the previous month, new mortgage lending climbed by about 20% year over year, rising from 272 billion rubles in January to 330 billion rubles. Both concessional and market mortgage segments benefited, with growth of roughly 15% and 40% respectively during this period.
The Central Bank explained that the January dip was largely seasonal, as the first month of the year typically records softer activity due to extended holidays. Additionally, the broad tightening of preferential mortgage terms since late 2023 may have steered some borrowers toward market programs, contributing to the observed shift.
Earlier, there were signals that mortgage demand for individual housing construction in Russia had reached record levels, underscoring sustained interest in property financing among households and developers alike.
Recent communications from the Central Bank also suggested the gradual completion of the bulk preferential mortgage program, marking a shift in the policy mix as the year progressed.
This progression underlines how macroeconomic conditions, policy changes, and seasonal factors interact to shape mortgage activity. For potential home buyers in Russia, the landscape remains dynamic, with a mixture of concessional options and market-based financing driving demand, while institutions adjust their risk appetites and product offerings in response to evolving regulations and consumer behavior. Analysts continue to monitor how these dynamics will influence housing affordability, credit growth, and the broader banking sector in the months ahead. (Central Bank of Russia bulletin, February 2024, and subsequent updates.)