From January to June 2022, the number of housing mortgages issued by leading (top 20) banks in Russia reached 529 thousand. This represents a 41% decrease to the same period of the previous year. The total value is estimated at approximately 1.8 billion rubles, down by 29% year-on-year.
In June, the mortgage market began to recover after a temporary decline in April-May. The key factors behind the market recovery were the realization of deferred demand against the backdrop of a decrease in market mortgage rates to 10.7-10.9%, an increase in the volume of mortgage loans issued under the Preferential Mortgage program due to a reduction in the rate from 9% to 7%, as well as distribution of partner mortgage programs of banks and developers at a rate of 0.1-2%.
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.