Mortgage Burden Varies Widely Across Russia: Study
A recent study by NOU VSh EMBA reveals stark disparities in mortgage repayment across Russia. Residents in different federal districts and regions face vastly different financial burdens and terms when purchasing primary and secondary housing.
In the primary market, residents of the Ural Federal District have the lowest repayment, averaging 1.6 million rubles over 8.1 years. Conversely, those in the Central Federal District face the highest, with repayments reaching 3.1 million rubles. Meanwhile, the average market rate for a mortgage on secondary housing has dropped to 22.5% per annum, a decrease of 4 percentage points since the beginning of June.
Buyers in certain regions bear the heaviest financial burdens. In Kalmykia, North Caucasus republics, Ivanovo Oblast, and North Ossetia, residents spend the largest share of their salary on mortgages. Across 21 Russian regions, mortgage payments exceed half of residents' income.
The duration and affordability of mortgages vary significantly between primary and secondary markets. For secondary housing, terms range widely by region. In Moscow, a monthly payment of 76,500 rubles requires 7.2 years, while in Pyatigorsk, it takes over 30 years. In primary markets, preferential programs offer rates starting at 7.74%, with repayment terms differing significantly between administrative centers. The lowest repayments are in Yekaterinburg (1.8 million rubles) and Vladivostok (2.4 million rubles), while St. Petersburg (6.9 million rubles) and Moscow (8.5 million rubles) have the highest.
The study underscores the vast disparities in mortgage repayment across Russia. While some regions offer more affordable terms, others impose significant financial burdens. Understanding these differences can help prospective homeowners make informed decisions and policy-makers address regional inequalities in housing affordability.
