SberBank has issued 226,000 home loans worth an aggregate of RUB 598.4 bn during the soft mortgage program that was launched as a support measure amid the pandemic, said Nikolay Vasyov, Vice President and Director of Sberbank's DomClick Division, during Krasnoyarsk Economic Forum's panel discussion called Soft Mortgage Extension: How and Where.

SberBank's State Support 2020 program has emerged as a rather organic and viable way to incentivize demand on the back of the pandemic, supporting the construction industry and people seeking to buy an apartment in a new building.

Mortgages are a popular way to buy housing in Russia these days. We believe the demand support program has proven to be timely and effective, but the gap between supply and a surge in demand has triggered price adjustments, which is a natural economic effect. Developers were not ready for this kind of demand because an economic cycle lasts two to four years in development, from buying a land plot and hiring contractors to commissioning real property. Meanwhile, the issue of comfortable housing is clearly among Russia's pressing ones - especially outside the capital - which is why if the government decides to extend the terms of the program we'll support this decision.

Nikolay Vasyov

Vice President, Director of the DomClick Division, Sberbank

Mr. Vasyov said that inflation had been stable in the last three years, reaching 4%, while the key rate had been around 7%. The Bank of Russia decreased it to 4.5% fast in early 2020, triggering a fall in savings and lending rates, which included mortgages in all segments. When buying a new apartment people quite often sell their old one, which others buy with the help of a mortgage loan.

According to him, the country's housing stock per resident reaches about 25 square meters, while in Europe the metric is 50% higher or more. Given that the average age of housing stock in Russia is approximately 30 years, the need for comfortable accommodations remains quite strong.

Attachments

  • Original document
  • Permalink

Disclaimer

Sberbank of Russia published this content on 14 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2021 10:38:03 UTC.