With a sharp increase in ready-built home prices in Russia, more citizens are opting to construct their own homes, a trend facilitated by the availability of government-backed mortgage programs.
According to “Etazhi” company, there has been more than a two-fold increase in such construction activities. Russians can now access loans for building a new home or completing one already started. This shift is partly driven by the temporary nature of the preferential mortgage program, set to conclude on July 1, 2024.
Regina Dydalina, director at “Etazhi,” stated that in April 2023, applications for state-supported mortgages represented 5% of all lending in the country real estate sector. By 2024, this figure had risen to over 10%. Concurrently, prices for completed homes have surged by 15-17%.
Experts anticipate a peak demand for building materials from mid-May to late summer, which may lead to higher prices. They advise that budgeting for constructions accounts for potential price increases and recommend purchasing materials before summer begins.
While the beneficial mortgage scheme is slated to end soon, there is a possibility it could be extended until 2030, albeit with some modifications. For instance, the government is considering raising the mortgage rate for families with children over six years of age to 12%.
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