Russians have become less likely to take a mortgage on luxury housing

In 2022, Russian citizens took out a mortgage on luxury housing in new buildings half as often compared to 2021. The fact that the Russians have become half as likely to take loans for real estate in this segment, Lente.ru was informed by analysts from the elite real estate agency Intermark Real Estate.

Specialists noted that this year about ten percent of clients have issued mortgages for high-budget housing, despite the presence of a large number of various programs from banks. They added that in the past few years, the number of transactions with mortgages in the elite segment has been continuously growing. Thus, at the end of 2021, the share of borrowers in the elite housing market was 19.5 percent.

According to experts, the share of mortgage lenders in the high-budget housing segment has declined for several reasons, including a decrease in buying activity, higher demand for deferred payments or installment payments, which two-thirds of customers were interested in, as well as tightening requirements for large borrowers from banks. Financial institutions have increased the amount of the down payment by 1.5-2 times. In addition, a number of banks set limits on the amount of the loan – the cost of the object should be in the range of 100-120 million rubles, and if the lot is more expensive, buyers began to be offered to cover the difference at their own expense. Finally, organizations began to pay more attention to the solvency of the buyer and to monitor more closely how reliable and constant the income from the source of his income.

Earlier, the Central Bank reported that in October 2022, the volume of mortgage loans in Russia decreased by 6.7 percent.