In the current climate of the Russian real estate market, Konstantin Aprelev, who serves as deputy chairman of the Association of Realtors, argues that investing in housing with hopes of future profit is not financially viable for most Russians. He pointed out that such an approach brings little benefit unless supported by the state’s various programs and subsidies, which can alter the economics of a purchase.
With interest rates hovering around 16 percent and mortgage programs largely unchanged, buying a home does not appear to be a reliable way to save money or generate quick gains. Aprelev spoke to the Public News Service, outlining conditions that could influence the appeal of real estate investments. He noted that the landscape could shift if certain policy levers are activated, but under current rules, straightforward speculation in housing looks less attractive.
He highlighted a narrow path that could make housing more affordable for specific groups: a concessional mortgage at about two percent annually. This exception is significant because it opens doorways for buyers who otherwise might be priced out by high borrowing costs. He also reminded readers of special programs such as the polar mortgage and the Far Eastern mortgage, which offer notably attractive terms. These options can be particularly advantageous for people relocating due to work — including teachers, healthcare workers, and IT professionals who relocate for employment needs.
From an investment standpoint, the expert believes it makes more sense to focus on renting while using available savings to build deposits. The strategy is to wait for more favorable conditions before committing to a purchase, especially when market fundamentals point to higher risk or limited upside in price appreciation under present financing realities.
On the other side of the decision spectrum, if someone needs a primary residence and has sufficient funds to avoid a loan, entering the housing market could still be sensible. In such a case, owning a home may provide stability and personal utility that private savings cannot replace, even if the overall market is not delivering high returns. Aprelev underscored this distinction, suggesting that personal circumstances should drive the choice rather than appetite for speculative gains alone.
Overall, the expert emphasized that the affordability of housing in Russia has declined significantly in recent times. This trend shapes both the practical budgeting decisions of households and the broader outlook for real estate as an investment vehicle. The message for prospective buyers is clear: the current climate is not conducive to quick profits through mortgage-driven purchases, unless one qualifies for targeted programs that lower borrowing costs or provides direct subsidies.
Analysts have repeatedly urged potential buyers to exercise caution and to assess affordability against the backdrop of ongoing macroeconomic pressures. They suggest prioritizing scenarios where the purchase is driven by personal need and long-term housing security rather than short-term speculative gain. In today’s market, it may be wiser to conserve liquidity, monitor price movement, and consider alternative saving strategies until more favorable financing terms emerge.
In summary, current conditions warrant a careful approach to real estate investment in Russia. While certain programs offer relief that can tilt the balance in favor of buyers, the overall environment does not favor aggressive leverage or rapid profit-seeking through home purchases. For many households, renting with a deliberate savings plan may prove to be the more prudent path while waiting for a more predictable and affordable financing landscape to unfold.