Russia Expects Decline in New Home Sales as Mortgage Rules Tighten
- brg_news_room
- 14 minutes ago
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Russia: State housing agency of Russia, Dom.RF, expects sales of new built homes to decline in 2026 following tighter Russia mortgage subsidies, despite the housing market avoiding a downturn in the previous year. Dom.RF forecasts new home sales of 21 to 22 million square metres in 2026, valued at RUB 4.5 to 4.6 trillion (USD 55.4 to 56.6 billion; EUR 50.9 to 52.0 billion), representing a fall in both volume and value compared with 2025. Preliminary estimates indicate that sales in 2025 remained close to 2024 levels, supported by strong mortgage activity even after the cancellation of a nationwide subsidised mortgage programme.
The expected slowdown is linked to planned changes to the family mortgage scheme, which accounted for a large share of home purchases. Proposed reforms include differentiated interest rates based on family size and limits on the number of subsidised mortgages per household, alongside reduced compensation to banks issuing such loans. Dom.RF noted that demand was brought forward in late 2025 as buyers sought to secure mortgages before the new rules take effect, which may weigh on sales in the coming year. The agency added that market performance in 2026 will depend largely on interest rate decisions by the Central Bank, with lower rates expected to support both mortgage demand and developer financing.
Source: The Moscow Times
