Mortgage Lending in Russia: a 238% Surge in the Secondary Housing Market
The volume of mortgage lending in Russia reached nearly RUB 1.6 trillion in the first half of 2026, increasing by 71.5% compared with the same period in 2025. The market recovery was supported by lower rates on market-based mortgage programs and strong demand for subsidized schemes, primarily the “Family Mortgage” program, according to a Domclick report.
Housing Loans in Russia Reach RUB 1.6 Trillion
In the first half of 2026, Russian banks issued almost RUB 1.6 trillion in mortgage loans. This is 71.5% more than in the same period of 2025, when the total volume of completed transactions amounted to RUB 923.3 billion.
The main change in the market was the recovery of demand for market-based mortgage programs, which was accompanied by growing interest in ready-to-move-in housing. Mortgage issuance for the purchase of apartments on the secondary market increased 3.4 times, or by 238.2%, reaching RUB 358.2 billion.
Demand also increased significantly in the primary market. Over six months, banks issued RUB 914 billion (+37.4%) in loans for the purchase of new housing. This segment remains the largest by lending volume.
A notable increase was recorded in the segment of market-based mortgage programs. Over six months, the volume of loans without state support reached almost RUB 500 billion, which is 3.7 times higher than in the first half of the previous year. The share of such products in the overall mortgage structure increased from 14.5% to 31.2%.
Subsidized programs retained their leading position in the market. From January to June 2026, banks issued more than RUB 1 trillion under these programs, up 38% year-on-year. Among state-supported schemes, the “Family Mortgage” program remains the most popular.
Mortgages for Country Houses in Russia
The growth of the mortgage market also affected the suburban real estate segment. In the first half of 2026, mortgage issuance for the purchase of completed private houses increased by 95% compared with the same period in 2025, reaching RUB 167.5 billion.
Even stronger growth was recorded in loans for individual housing construction (IHC). Mortgage issuance for building private homes increased by 108.4%, exceeding RUB 100 billion.
At the same time, increased mortgage activity has not yet resulted in a sharp rise in suburban property prices. According to Cian, the average price of a private house in Russia reached RUB 14.1 million in May 2026. Over the year, the figure increased by 6%, which is below the inflation rate.
The most expensive suburban housing is located in St. Petersburg and Moscow, where the average property price reaches RUB 40.4 million and RUB 37.3 million respectively. Among Russian regions, the highest prices were recorded in the Moscow Region (RUB 25.4 million), the Altai Republic (RUB 23.9 million), and the Leningrad Region (RUB 22.9 million).
Elena Bobrovskaya, Lead Analyst at Cian, believes that further reductions in the key interest rate could support demand for suburban real estate. According to her forecast, prices for such properties may rise by 4–6% in 2026, although growth will remain below inflation.
Reasons Behind Changes in Russia’s Real Estate Market
The recovery of the mortgage market began after the Bank of Russia shifted to lowering its key interest rate. In June 2026, the regulator reduced the rate by 25 basis points, from 14.5% to 14.25% per year. This was the first cut after a period of tight monetary policy and created conditions for banks to improve offers on market-based mortgage programs.
According to Domclick specialists, changes in lending conditions allowed part of the postponed demand to return to the market. Buyers who had previously delayed transactions due to high mortgage costs began to resume purchases. If the trend toward lower key rates continues, mortgage issuance volumes may exceed last year’s results.
International Investment analysts note that mortgage rates remain significantly higher than the levels seen before the tightening of monetary policy. Therefore, the market recovery is proceeding gradually: market-based mortgage programs are gaining popularity, while subsidized mortgages with government support continue to account for the majority of lending volumes.