Coldy Real Estate Digest for September 1 - 15

• Rating of streets with the most expensive housing, in which the first place, among flats and non-residential apartments (primary and secondary markets), is occupied by Ordynsky Dead End. The average price of 1 sq. m here amounts to 2.96 mln rub. The second place is taken by Granatny Lane, where the average price for a square meter amounts to 2.87 mln rub.;
• Rent or mortgage: what is cheaper in cities with a million-plus population?  Over the past years mortgage has become much more accessible. This includes both rate levels, housing choices and different benefits that facilitate the mortgage service and decrease debt burden. Moreover, the mortgagor fixes the monthly payment in the contract for the entire mortgage period. “If a mortgagor has ample means for the down payment, then mortgage will already be cheaper than rent”;
• The Bank of Russia has further increased the key rate by 0.25 pp — from 6.5% to 6.75%. This is the fifth successive increase. Last time, in July, the Central Bank increased it by 1 pp at once: it had become its most decisive move since 2014.  Together with experts, we will tell you what will happen to mortgage and housing prices;
• “From January to August 2021, the mortgage demand from mortgagors aged 30 to 40 decreased by 0.8 pp and amounted to 46%,” the press service of the National Bureau of Credit Histories communicated to Stroygazeta. “In particular, the biggest share decrease in mortgage issuance is seen in the age group of Russians under 30 years - by 1.2 pp to 20.6%”;
• “The Ministry of Construction, Housing and Utilities (Minstroy) of the Russian Federation is going to evaluate the necessity to adjust the 7% subsidized mortgage programme for new construction due to a potential consumer demand decrease,” announced the Deputy Minister of Minstroy of the Russian Federation Nikita Stasishin in the framework of Eastern Economic Forum on Friday, 3 September. “We have concerns about a decrease in consumer demand in the four large regions (Moscow, Saint-Petersburg, Moscow and Leningrad regions), which make a significant contribution to housing commissioning. It is important for us to look at the balance of demand, supply and square meter prices in autumn. If necessary, we will come up with a proposal for adjustment (of the subsidized mortgage programme – editor’s note.)”, TASS quotes Stasishin.

You can find further information on the above-mentioned events and other important real estate market news in Coldy’s Real Estate Digest magazine.​