In 2021, mortgage issues in the Russian market amounted to a record 5.69 trillion rubles, which is more than a quarter higher than the result of the previous year. This is stated in a message from VTB, which was received by Izvestia on Wednesday, January 12.
VTB Bank showed an increase in mortgage lending by almost 30%, for the first time in history it issued loans for 1.2 trillion rubles.
One of the drivers of growth in the mortgage market last year was the state support program, which has been in effect since 2020. VTB carried out every third transaction on it, having issued 63 thousand loans for almost 200 billion rubles. Last year, more than 25 thousand of the bank’s clients took advantage of the “family mortgage”, having issued loans for more than 100 billion rubles. According to the results of December, the share of the program in the total loans was about 25%.
Moscow and the region (460 billion rubles), St. Petersburg and the Leningrad region (107.8 billion rubles), the Novosibirsk region (43.4 billion), Tatarstan (42.8 billion) and the Sverdlovsk region ( 30.6 billion). The average check on a mortgage loan reached 3.4 million rubles. VTB’s portfolio of housing loans grew by a quarter over the year and reached 2.5 trillion rubles.
“Sales of mortgages in 2021 became a record in the entire history of the development of the market in Russia and, according to our estimates, came close to 5.7 trillion rubles. Due to the acquisition of new real estate, the quality of life has improved about 2 million Russians, which is comparable to the population of a large metropolis, and VTB has issued over 340 thousand loans, “said Evgeny Dyachkin, Vice President, Deputy Head of the Bank’s Retail Business Department.
According to him, the market dynamics was influenced by the deferred demand due to the pandemic, the active commissioning of new development projects and the record low level of rates in the first half of the year.
According to Dyachkin, in 2022 the situation on the home lending market should change – the market will cool down in the near future. He pointed out that the tightening of monetary policy by the Central Bank is reflected in the cost of mortgages, the rates on which have crossed the double-digit level. However, this year the demand for mortgages will remain against the background of the development of the construction sector and joint proposals from banks and developers. But much depends on the possible extension of the preferential mortgage program, he added.
If it is preserved, the volume of loans may again exceed 5 trillion rubles, if completed, it may be adjusted to the level of 2020.
The segment of individual housing construction (IHC), to which the focus of the state’s attention has now shifted, will also stimulate the housing lending market in 2022. In particular, this will be the expansion of the conditions of the state program for such facilities and the planned use of escrow account technologies. An additional impetus will be the special lending programs for individual housing construction, which were launched by the largest banks, the expert concluded.
On January 10, the general director of the National Rating Agency Alina Rozentsvet told Izvestia that this year, outside the framework of preferential programs, mortgage rates will, on average, exceed the key level by 1-1.5%: that may go beyond 10%. She believes that the preferential mortgage program will be extended this year, and the rate on it will remain below the key level.
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
