The increase in citizens’ funds in escrow accounts in November amounted to more than 250 billion rubles.

The increase in citizens’ funds in escrow accounts in November 2023 amounted to 261.3 billion rubles, according to Central Bank data. In general, throughout almost the entire last year (with the exception of January), there was a positive trend in the receipt of citizens’ funds into such accounts against the backdrop of high demand for housing. As a result, the volume of funds accumulated within the framework of project financing amounted to almost 5.9 trillion rubles—over the year, the amount increased by a record 1.7 trillion rubles. Let us explain that 95% of apartment buildings are now being built using this mechanism.

The November indicators were ensured by high rates of mortgage lending – then housing loans were issued in the amount of 726 billion rubles, of which the bulk were mortgages with state support. The growth rate of funds in accounts outpaced the October figures (201.7 billion rubles), but lagged behind the levels of September and August, when, against the backdrop of the peak issuance of mortgage loans, they amounted to 404 billion and 322 billion rubles. respectively.

The Central Bank also associates the November increase with a slowdown in the speed of “opening” escrow accounts, that is, the transfer of funds to developers after the commissioning of a facility. Thus, 321 billion rubles were transferred to developers in November. against 435 billion rubles. in October. However, in November the volume of apartment buildings commissioned amounted to 4.9 million square meters. m versus 4.4 million sq. m in October.

So far, citizens’ funds provide a fairly high level of coverage of developers’ debt on loans (94%) within the framework of project financing (its volume is estimated at 6.2 trillion rubles with a total volume of limits of 16 trillion rubles). This allows developers to receive loans under project financing at a fairly low rate – an average of 5.87% per annum. However, compared to October, the rate has increased slightly (then it was 5.78%) against the background of rising market rates for the part of the debt not covered by funds in escrow accounts, especially for new projects. Subsequently, as the demand for housing gradually cools against the backdrop of an increase in the down payment on preferential mortgage programs to 20% (and up to 30% for mortgages on new buildings at 8%), as well as tightening market regulation, we can expect a decrease in the flow of funds to escrow accounts and the level covering the debts of developers.

Evgenia Kryuchkova