In 2024, the Russian real estate market faced an unprecedented increase in the average mortgage payment. According to analysts, buying an apartment in a new building in Russia has become significantly more expensive for borrowers compared to a year ago. While in 2023 the average monthly payment was about 50,000–55,000 RUB, this amount has now tripled, reaching 150,000–175,000 RUB.

The secondary market also experienced substantial growth, with average costs rising by 1.5 times. Previously, the average cost per square meter was estimated at 69,000 RUB, but now it stands at 103,000 RUB.

Contents:

  1. Reasons for the Sharp Growth
  2. Subsidized Mortgage Programs
    1. Family Mortgage
    2. Mortgage for IT Specialists
    3. Rural mortgage
    4. Far East and Arctic Mortgage

Reasons for the Sharp Growth

The main factor driving this surge is the rise in interest rates. In response to economic challenges and growing inflation, the Central Bank of Russia repeatedly increased the key rate, which reached 21% by the end of 2024. This led to mortgage rates climbing as high as 30% annually.

In 2024, the government ended many subsidized mortgage programs with state support, which previously offered rates as low as 8% for purchasing new-build properties. After their cancellation, borrowers had to turn to standard mortgage products with much higher rates.

Another important factor is the average loan term. In August 2024, it reached 268 months (22 years and 4 months), which is 9 months longer compared to August 2023 (259 months or 21 years and 7 months). Extending the loan term helps borrowers reduce their monthly payments but significantly increases the total interest paid over the loan period.

Subsidized Mortgage Programs

Despite the overall worsening situation, several subsidized mortgage programs are still available, aimed at supporting specific categories of citizens and significantly reducing interest rates compared to standard loans.

Family Mortgage

Interest rate: up to 6% annually.

Maximum loan amount:

  • 12 million RUB for Moscow, St. Petersburg, Moscow, and Leningrad regions.
  • 6 million RUB for other regions.

Down payment: at least 20% of the property price.

Loan term: up to 30 years.

Eligibility: families that meet one of the following criteria:

  • Have at least one child under the age of 6.
  • Have two or more minor children.
  • Have a minor child with a disability.

Purpose of the loan: buying property on the primary market or refinancing an existing mortgage.

Program duration: until 2030.

Mortgage for IT Specialists

Interest rate: up to 6% annually.

Maximum loan amount: 9 million RUB.

Down payment: at least 20% of the property price.

Loan term: up to 30 years.

Eligibility:

  • Russian citizens under 50 years old.
  • Must work for an accredited IT company and earn a minimum monthly salary of 150,000 RUB (before taxes).

Purpose of the loan: purchasing property on the primary market.

Regional restrictions: not available in Moscow or St. Petersburg.

Program duration: until 2030.

Rural mortgage

Interest Rate: up to 3% annually.

Maximum loan amount: 6 million RUB; up to 12 million RUB for spouses applying separately.

Down Payment:

  • At least 20% of the property price.
  • 40% if spouses apply separately.

Loan Term: Up to 25 years.

Eligibility: All Russian citizens living in rural areas or planning to relocate to rural areas, working settlements, or small towns with populations of up to 30,000 people.

Purpose of the Loan: Purchasing property on the primary or secondary market in rural areas.

Regional Restrictions: Not available in Moscow, St. Petersburg, or regional administrative centers.

Program Duration: Indefinite.

Far East and Arctic Mortgage

Interest rate: up to 2% annually.

Maximum loan amount:

  • 6 million RUB for properties under 60 sq. m.
  • 9 million RUB for properties over 60 sq. m.

Down payment: at least 20% of the property price.

Loan term: up to 20 years.

Purpose of the loan: purchasing property on the primary market or building an individual home.

Eligibility: all Russian citizens. Applicants must register at the purchased property within 271 days of the purchase.

Regional restrictions: limited to the regions of the Far Eastern Federal District and Arctic Zone.

Program duration: until 2030.