Russian Mortgage Market Rebounds with 11% Growth in Issuances
The Russian mortgage market is experiencing a slow but steady recovery, with a significant increase in issuances. As of September 2023, over 2.6 trillion rubles in mortgages were issued, marking an 11% increase from the previous year and a 3% increase from August. This growth is being driven by a resurgence in demand for secondary housing and a rebalancing of the market.
The decrease in the share of state programs is being offset by an increasing variety of market offerings. In September, state programs accounted for 76% of the total mortgage issuance volume, down from approximately one-third lower than the result for January-September 2022. VTB, a leading Russian bank, expects this share to decrease further to 70% by the end of 2023.
Russian banks issued around 405 billion rubles in mortgage loans in September 2023. Alexey Okhorzin, Senior Vice President and Head of the Retail Business Products department at VTB, has noted that the 'family' mortgage remains the driving force of the Russian mortgage market.
The Russian mortgage market is showing signs of recovery, with an 11% increase in issuances compared to September 2022. The decrease in state program dominance is being compensated by an expanding variety of market offerings. Despite the changes, the 'family' mortgage continues to be the market's primary driver.
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