Russia's mortgage volume hits 2.6 trillion rubles in first seven months of 2024

Russia's mortgage lending volume reached 2.6 trillion rubles in the first seven months of 2024, representing a 38% increase compared to the same period last year. According to calculations by VTB Bank based on Central Bank of Russia and Frank RG data, the market entered July following a record-breaking June, subsequently seeing a correction as monthly disbursements fell to 355 billion rubles from 475 billion rubles in the previous month. Shift From Subsidized to Market Loans The peak observed in June was driven by high demand for family mortgage programs as borrowers hurried to finalize deals before government program conditions tightened. This surge led to a natural decline in demand for subsidized lending in July, which affected overall market dynamics. For the first seven months of 2024, subsidized programs accounted for 62% of total mortgage disbursements, though this share decreased by 2 percentage points in July. Conversely, market-rate mortgages increased their share by 12 percentage points over the month, reaching 52%.