Preferential mortgage led to an increase in prices for new buildings

The government program of preferential mortgage led to an increase in prices for apartments in new buildings. In July and August 2020, the average cost of new buildings in Russia increased by 6.2 percent. Preferential mortgages account for about 90 percent of loans issued at Purchase of an apartment.

In the first eight months of 2020, almost 900 thousand mortgage loans more than 2 trillion rubles. Moreover, in August, a historical record was set: the amount of mortgages issued amounted to 375 billion rubles, which is almost 150,000 loans. In monetary terms, the growth in the issuance of mortgages amounted to almost 60 percent compared to last year.

Together with housing on the secondary market growth was almost 3 percent. First of all, the growth is associated with the preferential mortgage program for purchases of apartments in new buildings at 6.5 percent in combination with an increase in the cost limits for purchased real estate. Preferential