Due to increased demand and low mortgage rates, housing prices in Russia will begin to increase again, by the end of the year growth could reach 10%. Such a forecast for Izvestia give market participants.

In July, the approval rate for mortgages in Russia reached a record high over the past three years – 85%, said Tatiana Reshetnikova, deputy head of the mortgage department at Etazhi. The last peak was in November 2021, when banks approved 83.5% of applications.

“According to the results of July, home sales increased by 13% compared to the previous month and by 20% compared to April,” Reshetnikova said.

The relative stabilization of the economic situation, the trend towards a decrease in the key rate, as well as a decrease in the cost of preferential mortgages allow developers to look to the future with optimism, say the Level Group development company. According to optimistic forecasts, the growth in demand, which was noted in June-July, will continue in the second half of the year. However, the most liquid projects may rise in price due to the return of pent-up demand.

“Liquid objects in the primary and secondary markets may begin to grow in price in the fall, when the business season begins: demand from private investors will be concentrated on them. Such apartments may rise in price by 5–7% by the end of the year,” Tatyana Reshetnikova believes.

High-quality residential complexes are in demand among buyers even in a low market, so prices will rise – by autumn they may increase by 3-5%, according to the Level Group. At the end of the year, according to forecasts, prices for primary housing will grow by 10-12%.

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