Mortgage loan amounts in Russia reach new high – averaging at 4.4 million rubles.
Russian Mortgage Loans Hit a Record High: What's Behind This Trend?
The average mortgage loan size in Russia has reached an astonishing high of 4.4 million rubles, according to recent data from the Central Bank. This figure marks a 10% increase since the start of 2025, and it's not stopping there. The average loan term has also peaked, reaching an all-time high of 310.7 months - that's nearly 26 years.
So, what's causing this surge in mortgage loans? Well, it seems the prices of housing, particularly in large cities, have been on an upward trajectory. This shift in demand towards more expensive properties, including luxury homes and those with improved infrastructure, has played a significant role.
accoridng to an analyst at Sovcombank, Anna Zemlyanova, expects that this year, average prices for new builds could increase by 9%. The main reasons for this are the shortage of supply in some regions and the increase in construction costs.
However, it's not all doom and gloom. On the secondary market, housing prices may drop slightly due to tight monetary policy and slowing income growth among the population.
One thing to consider is the financial burden these large mortgage loans can bring. For instance, taking out a 4.4 million ruble mortgage for such a term with a 20% down payment and an interest rate of 30% per annum could result in an overpayment of over 10 million rubles.
Banks have confirmed the increase in average mortgage checks in 2025. Sberbank has seen a 20% increase since December, while "Absolut Bank" has seen a 10% rise from January to April.
So there you have it - a deep dive into the current trends and factors contributing to the rise in average mortgage loan sizes and housing prices in Russia. It's clear that the market is changing, and savvy investors and homebuyers alike would do well to stay informed.
Moscow, Natalia Petrova
© 2025, RIA "Novyi Den"
At-a-Glance: Mortgage Loans and Housing Prices in Russia
Trends in Mortgage Loans- Average mortgage loan volume has surged, reaching 4.4 million rubles per customer by April 1, 2025.- Overpayments on mortgages can amount to over 10 million rubles due to high interest rates and long loan terms.- The average term of housing loans has extended to close to 26 years.
Factors Contributing to Increased Housing Prices- Inflation and building material costs, exacerbated by sanctions, have fueled housing price increases.- Historically, there was a shortage of high-quality housing, causing a rise in demand and prices.- Shift in demand towards premium and better-infrastructure properties has also pushed up average housing costs.
Economic Context- The Bank of Russia forecasts inflation to remain around 7-8% in 2025, potentially driving up housing costs further.- Investment in Russian real estate is expected to decline significantly in 2025, which may impact construction and housing prices indirectly.
In the current landscape, businesses and individuals are increasingly investing in Russian real-estate due to rising housing prices, particularly in luxury homes and those with improved infrastructure. This trend is attributed to factors such as inflation, building material costs, and a historical shortage of high-quality housing, which has led to increased demand.
In this same context, financial institutions like Sberbank and Absolut Bank have seen a substantial uptick in average mortgage loans, with Sberbank observing a 20% increase since December 2025 and Absolut Bank a 10% rise from January to April. However, it's crucial for potential homebuyers to be mindful of the financial burden these large mortgage loans may bring, with potential overpayments reaching over 10 million rubles under certain conditions.
