Russians have taken out over 1 trillion rubles in mortgages this year, according to VTB.
Make Your Dream Home a Reality(June 3, 2025, 12:46)*
Sponsored Content | Image courtesy of VTB
Get your hands on that dream home you've always wanted, but the numbers don't exactly add up? Well, VTB has some eye-catching figures for you!
Russian banks have crushed mortgage loan targets, doling out over 1.1 trillion rubles in the first five months of the year! However, this staggering figure represents a whopping 44% drop from the same period last year, according to VTB reports.
The average loan size zooms in at 4.7 million rubles, up from 4.1 million in 2024. May witnessed nearly 264 billion rubles being shelled out to individuals for acquiring apartments, houses, and their construction – a 7% decrease from April and a stark comparison to the vibrant 2024 May numbers.
Thinking that May's slowdown in the housing market is just a seasonal blip? Think again! The real culprits this time are a multitude of factors, including:
- A flurry of holidays resulting in reduced business activity among the Russian public.
- A sky-high key interest rate (hovering around 21%!) along with strict risk policies, and persistent changes in state support bearing their ugly fangs on the market's year-on-year dynamics.
But, when life gives you lemons, VTB makes mortgage lemonade! In the Nizhny Novgorod region, VTB announced the cancellation of commissions for state programs for developers in May. This courageous move sparked a 2.5x surge in mortgage issuance – a whopping 1.9 billion rubles – for the residents of Nizhny Novgorod since the start of the year!
That's not all! State support continues to be the ace in this raging poker game, soaring from an 80% to an impressive 85% share in the total volume of issuance for May.
So, are you ready to turn that house hunting fantasy into a grounded reality? Let VTB lend a (mortgage) hand!
Sources: [1], [2], [3], [5]
- The staggering amount of mortgage loans issued by Russian banks, despite a drop compared to the previous year, could still potentially help individuals realize their dream of owning a home, as the average loan size has increased and VTB has announced the cancellation of commissions for state programs for developers.
- For those considering taking advantage of the current market condition to secure a business opportunity, it's essential to note that the slowdown in the housing market is not solely seasonal, but also influenced by factors such as holidays, high interest rates, and changes in state support, making it vital to carefully assess the risks involved.
