Developers assessed the impact of the reduction in the key interest rate on the real estate market

The next scheduled meeting of the Central Bank of the Russian Federation was held, which resulted in a reduction in the key rate to 17%. In the Russian economy, this figure is most correlated with changes in the real estate market. Developers told Izvestia on September 12 about how the reduction in the key rate will affect it.

"Lowering the key interest rate revives demand: mortgages are becoming more affordable, and developers have the opportunity to offer more favorable conditions through subsidized programs. It seems that as a result, clients get better financial terms. But the chain of these changes is much more complicated," said Alexey Lysenko, Forma's Commercial Director.

According to him, the tendency to lower the key rate is capable of launching pent-up demand. "Apartment tourists" who only studied the market, accumulated funds on deposits and visited sales offices, will switch to buying activity.

Cumulative affect: a sharp decline in the key threatens to withdraw 10 trillion from deposits

In what scenario is this possible and when will the Central Bank rate drop below 10%

Dmitry Sofronov, Commercial Director of DARS Group, claims that after lowering the key interest rate, banks will be able to offer more affordable mortgage products, and this will lead to an increase in the number of transactions: many families who postponed the purchase will return to the market.

"At the same time, the attractiveness of deposits, especially long-term ones, is decreasing. We see that in recent months, more and more funds have been placed on short deposits, which means that people are ready to withdraw money and use it to buy a home," says Victoria Anokhina, Commercial Director of Razvitie Group.

A further increase in the number of transactions will lead to an increase in the cost of apartments. Therefore, it is not worth waiting for a rate cut: the difference between current conditions and future price increases may not play in favor of the buyer.

The decrease will have a positive impact on the economy and will become a driver for the real estate market, agreed Gulsina Shakova, head of the Mortgage Lending Department at GC EXACTLY. At the same time, Olga Nart, Deputy general director of the Luchi resort, added that both developers and business in general are optimistic, hoping to achieve a comfortable level of rates in the foreseeable future.

Finance Minister Anton Siluanov stressed on September 9 that the Central Bank is closely monitoring the budget deficit and its impact on monetary policy. He added that banks and the budget form the money supply, so reducing the budget deficit will create more opportunities for lending by commercial banks and ease monetary policy.

All important news is on the Izvestia channel in the MAX messenger.