The Real Estate Market in the Russian Federation in H1 2016

Abstract

As for 1 August 2016, since the turn of the year 521,600 apartments were built totaling to 37.2 mn sq. m, which constitutes 92.6% of the floor area commissioned during the same period of 2015. Decline in the volumes of commissioned housing in 2016 was owing, first of all, to a reduction of housing floor area constructed by individuals. In H1 2016, the number of registrations of land mortgage loans extended to individuals exceeded by 33.6% the number of registrations of land mortgage loans extended to individuals in H1 2015 and constituted 79.02% of the total number of mortgages extended during 2016. In H1 2016, credit institutions issued 389,800 housing mortgage loans (HML) totaling to Rb 664.5bn, which by 44.2% exceeded the amount of housing mortgage loans originated in H1 2015. As of 1 July 2016, outstanding debt on HML denominated in rubles in percent to residual debt went up by 0.03 p.p. against 2015 and constituted 1.11%. Average weighted interest rate for June 2016 on HML denominated in rubles came to 12.99% exceeding by 0.48 p.p. interest rates of February 2016.