The expert explained the drop in the market share of mortgages to 18%

The drop in the market share of mortgages to 18% is due to the high key interest rate, which does not give citizens the opportunity to predict loan payments. This position was expressed by Irina Radchenko, President of the International Academy of Mortgage and Real Estate, in an interview with Izvestia.

"Developers or realtors offer to take a mortgage at 20-25% with the expectation of refinancing. However, in the coming years we will live with a two—digit "key"," the expert points out.

A reduction in the key rate may lead to an improvement in the market mortgage situation, she admits. But now it is decreasing at such a slow pace that it is unlikely to significantly affect the market.

"If the rate is at the level of 2020, when it was 4.5%, the mortgage will revive. But it is important to take into account the demand, which is influenced by the cost per square meter and the income of citizens," explains the specialist.

The interlocutor of Izvestia believes that the cost per square meter of housing today is inadequate in relation to the incomes of citizens. She recalls that over the past five years, since the introduction of preferential mortgages, real estate prices have doubled in most cities.

"I believe that prices are not quite adequate right now, and mortgages are high, which is why developers are waiting for a cooling-off period. It makes sense for them to finish building houses with money from banks for project financing and sell them afterwards during the period of normal mortgage rates," Radchenko urges.

Read more about the situation on the mortgage lending market in the Izvestia article.

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