Since the beginning of the year, the demand for mortgages for the purchase of suburban real estate in Russia has increased by more than 10%. In general, based on the results, experts predict a twofold increase in the volume of loans issued for private construction. The reason for the rush of interest on the part of consumers lies on the surface: they are tired of living in a “human shed”. Russians began to seriously think about purchasing a dacha or a plot of land in order to leave the stuffy city. In turn, the market reciprocates them and offers various opportunities for the implementation of these plans. What is a mortgage on land plots, comments the head of the Mortgage Lending Department at VTB Sergey Babin.
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In Russia, the demand for individual housing is growing. Apparently people are tired of living in apartment buildings. The complete lack of privacy, constant noise from neighbors and from the street, as well as the inability to find a parking space prompted Russians to look for alternative accommodation options. Since the pandemic, the commissioning of private housing has been growing at an accelerated pace. In the first quarter of 2024, the volume of individual housing construction (IHC) in the country increased by more than 20% compared to last year, and experts predict that by the end of the whole year, the commissioning of private houses will again exceed multi-apartment construction.
< p>The demand for individual housing also affects the dynamics of the mortgage market, as it allows you to quickly realize your dream. The largest banks also reported a multiple increase in demand. In Sberbank, in less than four months of 2024, Russians took out loans for individual housing construction in the amount of about 171 billion, while in January–April 2023 the figure was three times less (65 billion).
“According to VTB estimates, based on the results of four months in Russia as a whole, the issuance of loans for the purchase and construction of individual houses amounted to more than 290 billion rubles. This is 12% higher than last year's result. Based on the results of the entire 2024, only for the purpose of individual housing construction, we expect an increase in issuances to a record 1 trillion rubles (a two-fold increase by 2023). Most often, clients apply for mortgages on individual housing construction and ready-made houses in Moscow and the region. In third place in terms of borrower activity is the Republic of Tatarstan. The top 5 also includes St. Petersburg with the Leningrad region and the Krasnodar region,” says Sergey Babin.
“The interest of Russians in private houses is growing at a record pace. However, according to our assessment, the potential demand on the market is approximately 1.6 times higher and amounts to up to 460 thousand houses per year,” continues Sergey Babin.
But gradually the opportunities for Russians are expanding, and more and more offers are appearing. “For example, VTB launched a program on May 31 that allows you to buy land and build a house yourself using your own funds or credit funds. In addition, such an instrument, unlike a mortgage on individual housing construction, may be suitable for those who want to approach construction step by step — first buy a plot, and then, having saved up funds, begin construction. Another option is that such a mortgage can be considered as an investment. For example, in 2023 alone, the cost of land plots increased by more than 10%,” the expert clarifies.
Note that private houses are mainly in demand by families with children, since this format of living is more comfortable and comfortable for them. affordable compared to apartments. For the same amount you can get a more spacious house than an apartment.
A similar mortgage product is also offered today by Sberbank. Each bank has its own requirements within the framework of such programs. So, in some you can increase the maximum loan size with the involvement of a co-borrower. Also, not all banks have commission fees, and salary clients, on the contrary, have advantages over other borrowers.