“Pre-war” mortgage boom in Tatarstan — RealnoeVremya.com
Residents of Tatarstan took out mortgages worth 16.4 billion in February 2022, while defaults amounted to only 1.3 billion rubles
The authorities announced a reduction in the interest rate on a preferential mortgage to 9%. Developers hope this will revive the housing market, where sales have sagged since April. Meanwhile, according to the Central Bank, Tatarstan is one of the leaders in mortgage lending not only in the Volga Federal District, but also in the country. In February, 5,153 mortgage loans worth more than 16.4 billion rubles were issued in the republic. The share of mortgage loans in the total volume of loans granted to citizens of the region is constantly increasing, while an opposite trend is developing across the country. Read the details in the material of Realnoe Vremya.
Lower mortgage rates will revive the market
Prime Minister Mikhail Mishustin instructed relevant departments to prepare documents as soon as possible to extend the preferential mortgage with a new rate until the end of the year. Deputy Prime Minister Marat Khusnullin also expressed concern.
“I see that the mortgage has collapsed in the last two weeks. Just collapsed. At first it was moving due to previously approved loans, and recently it collapsed, despite all the support measures offered”, said the Deputy Prime Minister.
In the coming days, the interest rate for a preferential mortgage on new buildings will be reduced from 12% to 9%. This was announced by Deputy Minister of Construction and Housing of Russia Nikita Stasishin.
“What is the goal today? First is the mortgage. President Vladimir Vladimirovich Putin asked to change the rate of a preferential mortgage. In the next few days, it will be 9% for all categories of citizens who want to buy housing at the construction stage in all territories and regions of our country,” Stasishin said.
As noted by developers interviewed by Realnoe Vremya, this decision by the authorities will be a positive signal for the recovery of the market, which fell sharply in April.
“The reason is clear: the mortgage was at 7% a year, and now it is at 12%. We are reassured that the amount of the loan has been increased, which is good, but the rates have nevertheless increased sharply. In March, everyone tried to buy apartments, so in that month there were very good indicators, and in April — naturally worse. But when there are such drastic changes in the market, people have to accept the new reality, and I think sales will pick up again by June,” shared Iskander Yusupov, Deputy General Manager of Unistroy.
Meanwhile, the Central Bank has released residential mortgage market data for February this year. The regulator notes that throughout the country during this period there was an increase in the number and volume of mortgage loans compared to the previous month, the increase was provided only by loans in rubles. Credit organizations provided 135,700 residential mortgages for a total of 476.9 billion rubles compared to 95,000 residential mortgages in the amount of 327 billion rubles in January. Compared to the same indicator last year, the volume of loans granted in February this year increased by 18.2%.
Tatarstan is in the lead
The largest volume of mortgage loans was issued in Moscow, Moscow Oblast and St. Petersburg, the smallest in Ingushetia. Tatarstan became the leader of the Volga Federal District: in February, 5,153 mortgage loans worth more than 16.4 billion rubles were issued, which on average corresponds to the indicators for 2021, when it there was a mortgage boom. By the way, these numbers are ahead of many cities by more than a million.
Tatarstan is also the first in the Volga Federal District in terms of the number of mortgages secured by debt rights under shared capital construction contracts (DDU) – 1,641 of them were issued for a amount of more than 4 billion rubles. Although the numbers are higher than in January this year (1,167), they did not reach the peak values of December 2021 — 2,122 mortgages worth more than 7.5 billion rubles.
The average mortgage interest rate compared to 2021 in Tatarstan fell from 7.39% to 7.91% in January-February. According to this indicator, the republic entered the four regions of the Volga Federal District, where it is lowest. The minimum rate is noted in the Republic of Sakha (Yakutia) — 5.13%, the maximum — in Karachay-Cherkessia — 9.9%.
The interest rate under DDU in Tatarstan was 5.31%, with a national average of 5.94%.
The average amount of mortgage loans is also gradually increasing – in February in Russia it reached 3.5 million rubles (plus 26.5% compared to last year). The largest loans are made in Moscow (7.2 million), Moscow Oblast (5.3 million) and St. Petersburg (4.9 million), which are distinguished by the highest cost of housing raised. The smallest average amount of loans is in Chechnya — 1.2 million rubles.
The share of mortgage loans in the total volume of loans in Tatarstan is increasing
Along with the growth in the number of issued loans, the debt on them is also increasing. Nationwide, it stood at 12.4 trillion rubles, up 2.2% on the month and 27.1% from the same date a year earlier. In Tatarstan, the debt amounts to more than 336.4 billion rubles and has been growing steadily since last year. This is the highest indicator in the Volga Federal District.
The maximum annual growth rate of mortgage debts was observed in the Chechen Republic (61.1%), the minimum — in the Yamalo-Nenets Autonomous Okrug (11.3%). Moscow (14.1%) and Moscow Oblast (8.8%) still have the largest share in the structure of total mortgage debts, and the Republic of Ingushetia (0.02%) has the smallest.
Mortgage debt under DDU in Tatarstan has also been increasing since March 2021, in February this figure reached almost 75 billion rubles, becoming the largest in the district. This trend is typical for the whole country, the total amount of debt under the DDU is 2.9 trillion rubles (from 2.2 trillion rubles a year earlier).
The indicator of overdue mortgage loans in Tatarstan amounted to 1.3 billion rubles, a slight increase compared with January and December. This is the second place after Bashkiria in the Volga Federal District, and nationwide the republic is not even in the top 10. According to the Central Bank, outstanding debts in the whole country for the year decreased by 0.3% to 64 billion rubles.
Mortgage arrears under the DDU contract in Tatarstan amount to 55 million rubles – since the beginning of the year they have increased slightly, and compared to last year they are noticeably decreasing.
In total, the share of mortgages in the total volume of loans issued to citizens of Tatarstan is constantly increasing, amounting to 34.35% in February. By the way, this goes against the market trend – in Russia people take more conventional loans than mortgages (the indicator is 27.7%).