The popularity of mortgages on individual housing construction has tripled
Today it is almost impossible to buy a new residential building outside the city, built using modern technologies. Turnkey projects were in short supply. Even taking into account the exorbitant prices. Therefore, most families are forced to build on their own. Many can only afford this with the help of credit.
Citizens are actively taking out mortgages for the construction of private houses. According to the Central Bank, in four months of 2024, that is, even before the start of the new season on the suburban real estate market, banks issued mortgage loans for individual housing construction (IHC) in the amount of 216 billion rubles. This is almost three times higher than last year.
In January-March, Russians issued 83.7 thousand mortgage loans for the purchase and construction of private houses, CIAN calculated. The largest number of suburban mortgages were issued in the Moscow region, Bashkiria, Krasnodar Territory and Moscow. It is interesting that the capital of the Russian Federation in terms of the number of country lots (3.7 thousand) ranks only 22nd in the Russian Federation. It is obvious that Muscovites took out housing loans mainly to buy houses in the Moscow region.
The highest rates of the share of mortgages on individual housing construction in the first quarter were recorded in the republics of the North Caucasus and southern Siberia with a high share of the rural population — from 44% to 69%, analysts noted. Thus, the share of mortgages in individual housing construction in Chechnya increased to 89%, in Ingushetia (77%), Dagestan (66%), Tyva (58%), Karachay-Cherkessia (56%), and the Altai Republic (53%).
To satisfy growing interest in suburban mortgages; in early June, several large banks updated their product lines. Some, like Sber, for example, launched a mortgage for the construction of a private residential building with a contractor through an escrow account, just like for housing in an apartment building under construction. Escrow accounts are used for settlements between a buyer and a contractor. The buyer of the house deposits money into an account where it is frozen until the construction project is transferred to the customer. This model protects the interests of buyers: if construction is delayed or the contractor goes bankrupt, the customer is guaranteed to get his money back.
Other large banks offered clients mortgages for the purchase of land plots. True, with a number of restrictions. Thus, the plot must be at least three hundred square meters in area. It must be classified as land of populated areas or agricultural land and used for individual housing construction, personal subsidiary farming or gardening. There are also limits on the maximum loan amount (up to 60 million rubles) and the terms of the agreement (up to 30 years).
“Russians' interest in private homes is growing at a record pace,” said Sergei Babin, head of the Mortgage Lending Department at VTB. In his opinion, potential demand in the suburban market is approximately 1.6 times higher and amounts to up to 460 thousand homes per year, so in 2024, the commissioning of private homes in the Russian Federation will likely again exceed the volume of multi-apartment construction.
As explained by «MK» Deputy Chairman of the Board of Bank DOM.RF Alexey Kosyakov, on the popularity of individual housing construction influenced by the pandemic, which changed people's preferences. Many people appreciated this format: a square meter of an individual house is cheaper than in an urban multi-apartment building. “At the same time, the family benefits in space. Thus, in loans issued by our bank, the average area of a private house is 125 square meters. m, for comparison, in multi-apartment housing construction — only 50 sq. m.», — added the banker.
«Market rates remain high due to the Bank of Russia’s strict policies, which puts pressure on the secondary market. Therefore, at the beginning of the year, the volume of issuing mortgages for the purchase of finished houses decreased by 30-40% year-on-year,” — told «MK» Chief analyst of Sovcombank Anna Zemlyanova. According to her estimates, the average market rates for mortgages on individual housing construction today are 18%, and average market mortgage rates for the purchase of finished houses — 17.3%.
Of course, people take such expensive loans mostly either for a small amount (when there is a little lack of money for the purchase or completion of construction), or if the buyer really liked the house or dacha, but he has a firm belief that in the near future his wallet will be full solid income, and you can close an expensive mortgage loan.
According to Zemlyanova, the demand for the purchase of suburban real estate is supported by preferential mortgage programs. They allow you to purchase housing on more favorable terms compared to high market mortgage rates.
In the structure of issuing loans for individual housing construction, the “Family Mortgage” program is in the lead; this year its share in the total portfolio grew to 42%, — Alexey Kosyakov reported. According to him, 33% of transactions were concluded as part of an IT mortgage. For «Preferential mortgage» accounts for 18%, “Far Eastern” — 2%. And only 1% of borrowers took out a housing loan under the standard market program.
Recall that “Family Mortgage” available at a rate not higher than 6%, program for IT specialists — not higher than 5%, “Preferential mortgage” — not higher than 8%, “Far Eastern Mortgage” — no higher than 2%.
As Alexey Kosyakov noted, now demand for individual housing construction is being redistributed in favor of «Family» and IT mortgages. One of the key factors in the further development of private housing construction, in his opinion, is a “safe mortgage”. — introduction of escrow accounts and letters of credit. “This is not only about the security of the transaction and the protection of the buyer’s funds, but also about the benefits. When applying for a loan with escrow, a reduction in the mortgage rate by 1 percentage point is provided, when using a letter of credit payment scheme — by 0.3 pp.”, — added the banker.
According to Anna Zemlyanova's forecast, in the near future market mortgage rates will remain high due to the tight monetary policy of the Bank of Russia. Increased wage growth due to a shortage of personnel in the labor market may partially compensate for the high market mortgage rate. Preferential programs, the expert believes, will remain on the market in one form or another, although they will become more targeted. This will ultimately support the demand for individual housing construction, where you can get a mortgage on preferential terms.