Mortgage Lending in 2022
Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-Economic Development. Moscow. IEP. 2023. No. 2, pp. 17-20
4 Pages Posted: 17 Apr 2023
Date Written: April 3, 2023
Abstract
In 2022, Russia maintained a high demand for real estate and the banking services pertaining to the issuance of housing (mortgage) loans. The main driver of market development, just as it was during the period 2020–2021, remained the government-funded mortgage programs offering relatively low interest rates. At the same time, over the course of last year, in the situation of unsatisfied demand, there emerged joint schemes of banks and real estate developers in the form of almost interest-free mortgage loans to finance the purchase of an overpriced home. The widespread use of such products has forced the RF Central Bank to resort to constraining measures against mortgage loans with extremely low interest rates, which it plans to implement in 2023.
Keywords: Russian economy, mortgages, retail loans
JEL Classification: G21, G24, G28
Suggested Citation: Suggested Citation