From January to April 2022, the number of housing mortgages issued by leading (top 20) banks in Russia reached 433 thousand. This represents a 26.5% decrease to the same period of the previous year. The total value is estimated at approximately 1.48 billion rubles, down by 13.6% year-on-year.
The main reason for decrease in the volume of mortgage loans issued in April (down by 75% year-over-year) was the delayed effect of growth in mortgages rates that followed the increase of the key rate of the Bank of Russia at the end of February to 20%. A month ago, in March, the volume was kept high by rush demand for loans approved before the rate hike.
The number of households becoming owners of new apartments and houses is a key factor shaping the demand for furniture for all residential areas in the medium term in Russia, as well as partly pent-up demand over a longer time-horizon.
We are tracking this indicator more closely, including the structure of mortgages issued by types of property and housing readiness, within our extended Market Reports.