The Surging Growth of Mortgage Issuance for Primary Housing: Key Trends and Implications

2023-06-21 07:05:44

The issuance of mortgages for primary housing is growing significantly.

According to Sberbank’s Domclick service, in May the number of mortgage loans issued for the construction of private houses in the country increased by 56.1%. The number of transactions in the primary and secondary markets increased by 1.8% and 0.4%, respectively.News».

The share of mortgage loans for individual housing construction in the total amount increased from 5 to 8%. Experts note the growth of this indicator in almost all subjects. The high growth in the IZHS market is explained not only by the seasonal activity of buyers, but also by the spread of preferential mortgages in this segment, as well as a number of legislative reforms.

In the primary market, the share of mortgage issuance remains high (24%): subsidized mortgages continue to encourage Russians to buy apartments in new buildings. In some regions, the issuance of mortgages for primary housing has increased significantly, according to this indicator, Adygea is in the lead (+21.9%).

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