Mortgage-Free Home Purchases in Russia Rise by 26.5%

Russian property buyers are increasingly using their own funds instead of bank financing. In the first six months of 2026, the number of mortgage-free real estate transactions exceeded 200,000, while in Moscow and St. Petersburg such purchases accounted for half of all housing deals, according to Domclick analysts.

Dynamics of Mortgage-Free Transactions in Russia

From January to June 2026, Russians completed more than 200,000 real estate transactions without using mortgage loans. This is 26.5% more than in the same period of 2025. In the new-build segment, the number of such purchases increased by 63.6%, reaching almost 57,000 transactions.

Demand for ready-to-move-in apartments purchased without mortgages grew by 26%, reaching around 131,000 deals. Existing homes remain the most popular segment among buyers using their own funds, accounting for more than 60% of all mortgage-free transactions. The share of new-build properties in this structure reached 27%, increasing by 6 percentage points compared with the previous year. Land plots for construction and completed houses accounted for around 13% of transactions.

Regions with the Highest Share of Mortgage-Free Home Purchases

The largest share of transactions without bank financing was recorded in Moscow and St. Petersburg, where the figure reached 50%. In other words, every second real estate transaction in the first half of 2026 was completed without a mortgage. The Novosibirsk Region ranked third with 48%, followed by the Kaliningrad Region (46%), Kostroma Region (45%), and Moscow Region (44%).

A high share of mortgage-free purchases was also recorded in the Omsk Region (43%), Astrakhan and Saratov regions (42% each). In the Yaroslavl, Ryazan, Voronezh, and Pskov regions, the figure was 41%, while in the Oryol Region it reached 40%.

Fastest Growth Rates Across Russian Regions

The strongest growth in mortgage-free property purchases was recorded in Siberia, the Northwestern Federal District, and Central Russia. The Altai Region became the leader, with the number of non-mortgage transactions increasing by 122%. The Novgorod Region ranked second with growth of 119.2%, followed by the Ryazan Region with an increase of 118.1%.

The top five regions with the fastest growth also included the Omsk and Kemerovo regions, where the number of such transactions increased by 115% and 113.2%, respectively. In the Republic of Mari El, purchases made with buyers’ own funds grew by 113%.

The Tula Region recorded an increase of 111.6%, while the Kaliningrad Region saw growth of 106.4%. Almost double growth in mortgage-free transactions was registered in the Perm Region (+99.2%), Tyumen Region (+96.6%), and Krasnoyarsk Region (+95.1%). In the Vladimir and Astrakhan regions, the number of purchases without mortgages increased by almost 80% — by 78.8% and 78.1%, respectively.

Mortgage Lending Volume in Russia

Earlier, Domclick reported significant growth in mortgage lending volumes in Russia. In the first six months of 2026, Russian banks issued almost RUB 1.6 trillion in mortgage loans, which is 71.5% higher than in the same period of 2025.

Mortgage lending for purchases of existing apartments increased 3.4 times, or by 238.2%, reaching RUB 358.2 billion. At the same time, new-build housing remained the largest segment by mortgage lending volume, with RUB 914 billion issued (+37.4%).

The share of mortgages issued without government support increased from 14.5% to 31.2%. The volume of lending under market-based mortgage programs reached almost RUB 500 billion. However, preferential mortgage programs continue to account for the majority of mortgage transactions, with more than RUB 1 trillion issued under state-supported programs during the first half of the year. The most popular program remains the Family Mortgage program.

Outlook for the Russian Housing Market

In July 2026, the Bank of Russia cut its key interest rate once again, from 14.25% to 14% per year. The Board of Directors noted that the economy continued to grow at moderate rates. The increase in prices and inflation expectations during the summer months was largely driven by temporary factors. The estimate for underlying inflation remains in the range of 4–5% in annual terms. The regulator also highlighted a slowdown in credit growth in June.

The Bank of Russia’s baseline scenario assumes an average key rate of 14.5–14.6% in 2026 and 10.5–12.5% in 2027. Due to the surge in fuel prices, annual inflation is expected to reach 6.0–7.0%.

International Investment analysts note that a reduction in interest rates could lead to more affordable bank offers and support further market recovery. However, mortgage rates remain above the levels seen before the period of monetary policy tightening. Therefore, government-supported mortgage programs are expected to continue playing the main role in the housing market in the near term.