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Sales of newly built homes in Russia tumbled in the first half of 2025 as the end of a popular mortgage subsidy program and high borrowing costs pushed many buyers out of the market.
According to a report published Tuesday by the state-owned financial institution Dom.RF, sales of new residential developments fell 26% year-on-year between January and June, totaling just 10.4 million square meters sold.
The downturn coincides with the July 2024 closure of Russia’s flagship state-supported mortgage program, which had allowed buyers to secure loans at 8%.
Analysts at Dom.RF also reported a staggering 66% drop in mortgage issuance in June compared to the same month last year, though they predicted that figure represented a low point, with the pace of decline expected to ease starting in July.
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Russia’s Central Bank reports that nearly nine out of 10 mortgages issued this spring were backed by government subsidy programs.
The "family mortgage" program offered to families with children accounted for 88% of subsidized loans issued in June.
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