“The higher the mortgage payments, the lower the costs of citizens in other areas”

Over the past two years, real estate prices have risen sharply, and not only for objective reasons, said Natalia Trunova, auditor of the Accounts Chamber, in an interview with Vedomosti. “It is customary for us to buy real estate in any incomprehensible situation,” she says, explaining that the rush demand was largely caused by a situation of general uncertainty. But another, no less significant factor in the growth of housing prices – the program of preferential mortgages for new buildings – in addition to pressure on the cost of apartments, led to imbalances in the market, in particular, a price gap between primary and secondary housing. Because of this, some citizens can no longer, as before, sell old real estate in order to buy a new one – the proceeds from the transaction are not enough. Therefore, the lending program for the purchase of housing in new buildings at 7% should be suspended, Trunova believes. In any case, the market, in her opinion, should be cooled, which is impossible without state policy. Purposeful work of the authorities could reduce the value of real estate by up to 20%.