Russia has Set an Absolute Record for Mortgage Lending
OREANDA-NEWS. As stated in the message of the development institute "Dom.rf", which is at the disposal of "Lenta.ru", in 2020, 1.7 million mortgage loans were issued in Russia for a total of 4.3 trillion rubles. Thus, the country has set an absolute record for the issuance of housing loans in the entire history of the domestic mortgage market.
Compared to the figures for 2019, the volume of mortgage lending in Russia increased by 35 percent in quantitative terms and by 50 percent in monetary terms, analysts calculated. In their opinion, the rapid development of mortgages was facilitated by several factors, the main one of which is the decline in market rates on housing loans. In addition, the popularization of mortgage lending was helped by the launch of preferential state programs, in particular, the program for issuing loans at 6.5 percent for the purchase of apartments in new buildings.
Dom.rf reports that as a result, in the segment of new buildings, which is mainly subject to preferential programs, the average rate dropped to about 6 percent. " They also emphasize that the decrease in rates supported the demand for housing and allowed developers to increase supply from the second half of 2020. According to the organization, in the second half of the year, the launch of new multi-apartment construction projects increased by 39 percent compared to the indicator for the same period of 2019.
Earlier in January, it became known that in Russia 57 percent of young people (under the age of 35) are ready to take out a mortgage to improve their living conditions. Currently, about 8.6 million (27 percent) 18-35 year olds live in rented housing.