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The rise in housing prices has nullified the benefits of preferential mortgages

The rise in housing prices has nullified the benefits of preferential mortgages

The rise in housing prices offset the positive effect of the preferential mortgage. Those who made the deal before the end of August managed to buy an apartment profitably on credit, and in the fall, developers raised prices.

As the Kommersant citing a study by the National Rating Agency, Russians who bought real estate on concessional loans by the end of the summer save about 11% compared to those who took out loans at 8% each. 

By mid-October, due to high demand, prices in new buildings in the regions increased by an average of 7%. According to analysts' forecasts, by the end of this year, prices will rise by another 3-5% - then the positive effect of preferential mortgages will be exhausted.

In September, more than 60 thousand loans were issued, which is about a third more than in June and August, but with the extension of the program, it is possible to return to the summer indicators for monthly issuance of loans.

Experts believe that the rise in developer prices was ensured by the abolition of discounts in force in the lockdown, and the transition of developers to escrow accounts and project financing continues to affect. It is predicted that in 2021 the rise in prices will slow down - but due to the decrease in the number of solvent borrowers, the demand will decline due to the growth of the population's debt load.

Experts note that large developers were able to make good money on the rise in prices against the background of preferential mortgages. Freedom Finance analyst Valery Yemelyanov says that, for example, PIK's sales margin increased by 38% in the first half of the year.

The program preferential mortgage at 6,5% per annum was extended in Russia until July 1, 2021. Initially, the program was designed until November 1, but it worked well, a large number of families took advantage of it, so the federal authorities decided to extend it.

В top - 3 price increases for new buildings were the Astrakhan, Irkutsk and Tomsk regions, where housing on the primary market has risen in price by an average of more than a third. In Primorye, the price per sq. meter rose by 20%. In nine regions, property prices fell in July. So, in Yakutia, new housing has fallen in price by a third.

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