Individual housing construction breaks records amid general stagnation of housing loans

In February, the mortgage lending market for individual housing construction (IHC) set an absolute record: its share in the total volume of housing loans issued was the highest in history, and the segment itself was the only one growing. Moreover, bankers say, for the first time the issuance of loans for individual housing construction exceeded the issuance of loans for the purchase of apartments. According to forecasts of market participants, this year we can expect an increase in the volume of mortgages for individual housing construction to 1 trillion rubles, which will double last year’s level.

According to the Bank of Russia, in February the share of mortgage loans for individual housing construction in the total market volume in terms of quantity set a historical record, reaching 12%. The total shows the second result in history – 13%. The maximum share in the volume of mortgage loans for the construction of one’s own home was noted in January and amounted to 14.6%. Until 2024, the share of mortgages on individual housing construction never reached 10%.

According to DOM.RF, in February, 11 thousand mortgage loans were issued for individual housing construction for a total of 50 billion rubles. As a result, the segment has become the only one growing in the mortgage market. DOM.RF notes that compared to February last year, the issuance of mortgages for individual housing construction increased by 274% in quantity and by 316% in volume. Despite the rapid growth, there are no plans to use macroprudential limits on loans for individual housing construction, since “the risks in the segment are not systemic in nature and do not pose a threat to financial stability,” said Evgeny Rumyantsev, deputy director of the Central Bank’s financial stability department, at the annual meeting of bankers with the regulator.

The bankers themselves confirm the active growth in the individual housing construction segment and expect it to continue in the future. Thus, according to the Domklik analytical center (a division of Sberbank), the number of mortgage loans for individual houses in February for the first time exceeded the number of mortgages issued for apartments in new multi-apartment buildings. As noted in the Domklik study, the demand for primary housing continues to decline – 7.4 thousand issues in February, while the number of issues on the individual housing construction market rose to 9.7 thousand on the eve of the spring-summer season.

Sberbank believes that in the coming year the demand for private houses will only grow. “The key factors that contribute to the acceleration of market development include the emergence of new products for buyers, which in the future will reduce the risk of purchasing this type of real estate; in addition, new laws are now being actively discussed, in particular the bill on escrow accounts, tax incentives for developers, simplifying the procedure for obtaining permits,” said Domklik director Alexey Leipi.

VTB expects that in 2024 the volume of mortgage issuance for individual housing construction will reach 1 trillion rubles. “This will double the result of last year and will become a new record for the market,” the bank emphasizes. In addition to the “comfort of this format of living” and the price per square meter, which is lower for houses than for apartments, VTB cites government programs with preferential rates that do not exceed 8%, and for borrowers with children – 6%, as the market driver.

It is advisable for the state to focus on the development of private construction, taking into account its demand among Russian families, VTB believes: “We believe that state compensation for the rate of project financing for the construction of individual housing construction can give an additional impetus to the market – this is important both for contractors and for large construction companies.” companies.”

Maxim Builov