Developers faced the risk of bankruptcy due to high creditworthiness

The mass transition of construction companies to floating rate loans and reduction in the number of transactions in 2025 by more than a third may lead to bankruptcies of developers, market participants and experts told Izvestia.

Accumulative affect: early repayment of mortgages and loans fell by one and a half times

Is it really advantageous to direct free money to a deposit instead of closing loans early?

According to Radik Nigmatullin, development director of Dvizhenie (ecosystem of development and real estate projects), the increase in the key rate affects the rise in the cost of construction and the cost of materials.

"Developers' projects that started last year and this year were not designed for the current key rate. Developers with more than 50% creditworthiness will suffer the most, it is not excluded that they may face bankruptcies," the expert explained.

According to him, the construction business now needs support. Today it has become more profitable to rent housing rather than buy it with a mortgage.

Georgy Ostapkovich, director of the Center for Conjunctural Studies of the Institute of Economic Research of the National Research University Higher School of Economics, also admitted that some construction companies may face bankruptcy next year because of this.

"By taking loans with a floating rate, they thought that there would be a reduction in the rate. But the situation has turned the other way. That is, developers now cannot refinance at a low rate, on the contrary, they now have to borrow at higher interest rates. Of course, it hits the developers hard," the expert explained.

He also noted that the cost of commercial real estate has also started to decline. According to some analysts, in Moscow it fell in price up to 50%.

Read more in the exclusive material "Izvestia":

The meter of problems: the decrease in the number of transactions may lead to bankruptcies of developers