From January to July 2022, the number of housing mortgages issued by leading (top 20) banks in Russia reached 618 thousand. This represents a 41% decrease to the same period of the previous year, yet a 40% increase to the previous month. The total value issued since January is estimated at approximately 2.2 billion rubles, down by 30% year-on-year.
In July, the mortgage market continued to recover after a temporary decline in April-May. The key factors behind the market recovery are the realization of deferred demand against the backdrop of a decrease in market mortgage rates to 10.1-10.5%, an increase in the volume of mortgage loans issued under the Preferential Mortgage program due to rate cut to 7%.
The number of households becoming owners of new apartments and houses is a key factor shaping the demand for furniture for all residential areas in the medium term in Russia, as well as partly pent-up demand over a longer time-horizon.
We are tracking this indicator more closely, including the structure of mortgages issued by types of property and housing readiness, within our extended Market Reports.
