Real Estate Demand: Social Studies, Statistics And Publications. №2, October 2016

29 October 2016
 

The main topic of NAFI’s open research in the field of real estate for the current year, became the demand of citizens for housing, both owned and rented.  

We are forecasting that for the coming year there will be no significant increase in demand for the purchase of privately owned home and therefore increase in demand for mortgage finance. Opinion is that the markets and demands will stagnate and remain at similar levels as at present. The main reason that we are seeing for the stagnation of the sector is the termination of the state program that subsidises interest rates on mortgage products. The fact that the program will not be extended and will end in 2016 has already been announced by the Minister of Construction and Housing of the Russian federation Mikhail Man, as well as the Head of Analytical Centre AHML Mikhail Goldberg. According to AHML, during the first half of 2016 the state supported loans accounted for 40% of the total number of mortgage loans. In other words - 145 thousand loans worth 262 billion rubbles.  

The results of NAFI’s recent research identified a significant demand for rented accommodation, which could be a great option for solving the housing problem on condition that the costs of renting remain relatively low. 

We have observed for more than one year, within the commercial real estate market, there remains a discrepancy between real market prices and its subjective perception by entrepreneurs. The availability of the accommodation is consistently included in the top 5 major problems faced by business.    

Details are on the pages of the review.

Type of publication: Industry report

Related publications

Real Estate Demand: Social Studies, Statistics And Publications. №2(6), February 2017
16 May 2017
2016 saw the Russian residential property market begin a tentative recovery after the 2015 slump. Similarly to the 2008-2009 crisis, after regaining their post-crisis footing, Russian consumers soon began to return to the market.

The methods used