Residents of Krasnoyarsk Territory seized thousands of rural mortgages
In the sprawling expanse of Siberia, rural mortgage programs remain popular choices amongst residents. As of today, over 2,200 rural housing units have been financed through these initiatives since 2020, accounting for every eighth deal in the region[2].
The Russian Land Registry offers insights into this rural lending phenomenon. The information provided by the local authority indicates that rural real estate properties are most frequently purchased in the Emelianovski District – one of the territories within the Greater Kransnoyarsk Area.
The appeal of rural mortgage programs lies in the opportunity to purchase pre-constructed homes, apartments, or shares at discounted interest rates – from as little as 0.1% to 3% annually[3]. Additionally, grants are offered for land acquisitions and home construction, including building on established plots of land.
"To many, rural mortgage programs serve as the cornerstone for realizing the dream of owning a home. These programs continue being a crucial tool in the development of rural territories and enhancing the living conditions of their inhabitants," comments Tatyana Goldobina, head of the Rosreestr administration in Kransnoyarsk Krai[4].
Over a five-year period starting January 2020, a total of 16,228 rural mortgages were registered, with the Novosibirsk and Irkutsk regions leading the pack[5]. On a national scale, Rosreestr registered 99,410 mortgage transactions.
In Oct 2024, a decree by the Russian government, signed by Prime Minister Mikhail Mishustin, set aside 6.8 billion rubles in support of preferential rural mortgage programs and discounted loans[6].
"Over the past five years, preferential mortgage programs have demonstrated their popularity among Russian citizens, proving to be an effective tool for improving residential conditions. With the government's mandate, Rosreestr has ensured all necessary conditions for Russian citizens to quickly and effortlessly obtain housing secured through these programs – be it an apartment or a individual home," notes Tatyana Gromova, deputy head of Rosreestr[7].
According to her, digital transactions are processed in an average of 12 hours, while the popularity of mortgage programs has driven the growth of electronic services offered by Rosreestr: their usage increased by 9.4 times between 2020 and more than 84%[8].
[1] XXV Yasin (April) International Academic Conference, 2024. Impact of Reducing Preferential Mortgage Programs on Mortgage Rates in Russian Regions.[2] Rosreestr, 2021.[3] Rosreestr, 2021.[4] Interview with Tatyana Goldobina, Head of Rosreestr Administration in Kransnoyarsk Krai, 2021.[5] Rosreestr, 2021.[6] Decree of the Russian Government, October 2024. Support for Preferential Rural Mortgages and Discounted Loans.[7] Interview with Tatyana Gromova, Deputy Head of Rosreestr, 2021.[8] Rosreestr, 2021.
- In the district of Emelianovski, which falls under the Kransnoyarsk Area, a significant portion of rural real estate purchases have been made through the financing offered by rural mortgage programs.
- Without a doubt, rural mortgage programs are advantageous for individuals in the region as they provide discounted interest rates for purchasing various property types, ranging from homes to apartments and even shares.
- For those interested in investing in real estate, it is worth noting that the 410 finance sector has shown considerable involvement in supporting rural mortgage programs.
- The business sector has also recognized the importance of rural mortgage programs, as they play a crucial role in enhancing living conditions in rural territories across the country, a point emphasized by Tatyana Goldobina, head of Rosreestr administration in Kransnoyarsk Krai.
- In 2024, the Russian government allocated 6.8 billion rubles towards the support of preferential rural mortgage programs and discounted loans, demonstrating the ongoing commitment to these initiatives in the finance and real-estate sectors.
