Mortgage market normalization is expected in Russia in 2024-2025

Olga Boltrukevich, director of the ministry's financial policy department, said the Russian Ministry of Finance expects the mortgage market to normalize in 2024-2025 after the records of 2023.

“We periodically hear catastrophic forecasts of a market decline in 2024 and 2025; our forecasts indicate that no catastrophe should happen,” said Olga Boltrukevich.

She noted that preferential programs took up about 90% of the mortgage market for new buildings, which led to an imbalance in the market. According to Boltrukevich, the share of government programs in the primary housing market should gradually decrease as the key rate decreases.

Currently, in Russia, there are preferential mortgages for new buildings (with a rate of 8%), family mortgages (with a rate of 6%), Far Eastern and Arctic (with a rate of up to 2%), IT mortgages (with a rate of up to 5%), rural mortgages (with a rate of up to 3%), etc. The preferential and family mortgage programs in their current form expire on July 1. Family mortgage extended until 2030. On April 24, Deputy Minister of Finance Ivan Chebeskov announced that the Ministry of Finance was working on special conditions for family mortgages for small towns. He said the preferential rate will not be lower than 6%.

Author: Sergey Nikolaev