Prices for new housing in Russia have increased by 90% in three years, said the President of the Central Bank of the Russian Federation, Elvira Nabiullina, on November 16 during her speech at a meeting in the State Duma.
“On average across the country, the prices of new construction increased by 90% in three years, that is, they practically doubled, which represents double the increase in the same salary in the same three years.”– said Nabiullina.
According to her, property values have increased due to the increase in the number of mortgages issued. “The problem is that developers cannot quickly increase the volume of housing under construction, and the explosive growth of mortgages is largely reflected in the increase in prices.” – noted the head of the Central Bank.
According to Nabiullina, this increase in the prices of new constructions is due to the high growth rate of mortgage credit to the population.
“Credit to the population is growing, especially in the mortgage field. Very high growth rates are recorded here: more than 32% in annual terms. That is, in 12 months the mortgage portfolio has grown by a third.”the head of the Central Bank emphasized.
He expressed concern that this would be accompanied by the practice of reducing loan quality, with banks issuing mortgages to borrowers with already high debt loads. “In the future, this can create big risks for banks and, most importantly, for the borrowers themselves.””said Nabiullina.
Source: Rossa Primavera
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