PJSC Sberbank : Russians buying mortgaged property and cars more actively in 2021

Portal DA, one of the largest specialized foreclosure websites in Russia, has summarized its results for the first nine months of 2021. During this period, 1,933 deals totaling RUB 7.3 bn were closed. The number of deals increased by 18% y-o-y, while the amount rose by 9%.

The main trend on the collateralized assets market was a 7% decrease in the average deal value, from RUB 15 mn in 2020 to RUB 14 mn in the first nine months of 2021. This is due to an increase in the number of transactions in the residential real estate and transport segments, which are traditionally cheaper than commercial and industrial real estate. Housing and vehicles accounted for 68% of all transactions. Compared to the same period in 2020, housing sales increased 50% in monetary terms, while sales of cars and commercial vehicles doubled.

The average transaction value amounted to RUB 3.6 mn in the housing segment, RUB 0.6 mn in the passenger cars segment, and RUB 1.8 mn in the commercial transport segment.

The foreclosed housing sold was 10%-20% cheaper than comparable market properties, cars were 10%-15% cheaper, and commercial vehicles were 10%-50% cheaper. The most active buyers snapping up real estate were located in Moscow Region, Krasnodar Krai, St. Petersburg, Khabarovsk, and Yaroslavl.

Portal DA specialists:

"Cars and housing prices have risen significantly during the pandemic, so retail buyers are more likely to look at foreclosed assets, which are on average 10-15% cheaper than the market. In addition, 90% of the items posted on Portal DA are liquid and free of any encumbrances, which also motivates buyers to close deals."

Portal DA currently hosts over 10,000 assets worth RUB 361 bn. Almost 2,000 users are registered as sellers, including companies, banks, bankruptcy administrators, auction organizers, and state-owned companies. All sellers place their assets on Portal DA free of charge and communicate with potential buyers directly.