Excessive mortgage loans surpass the 22 trillion ruble mark
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In the second quarter of 2025, the Russian mortgage market experienced a significant surge, with banks issuing a record-breaking number of loans, according to data from DOM.RF.
The "Family Mortgage" program remained the most popular, accounting for around 90% of all state-supported loans in the quarter, showing no change from the previous quarter. This program, which offers preferential terms, continues to be the cornerstone of the Russian mortgage market.
The surge in mortgage activity can be attributed to several factors. Government mortgage subsidy programs, favourable monetary policy, rising demand for housing, expanded mortgage lending by banks, and increased availability of new housing are all likely contributors. However, DOM.RF has not yet released a specific report detailing the factors driving this growth in Q2 2025.
The number of mortgages issued in June 2025 exceeded the quarter's average daily issuance by 2.3 times. Banks issued 72.6 thousand mortgages worth 349.9 billion rubles in June, representing a 6% increase compared to the previous quarter.
State support remains the key driver for mortgages, with 85% of all issuances falling under preferential programs, amounting to 283 billion rubles in June 2025. The share of preferential programs reached a record 64% in terms of quantity in the II quarter of 2025.
The share of loans for under-construction housing was 63.5% of the total volume of mortgages issued in June 2025, remaining unchanged from the previous quarter. This indicates a continued preference for new housing among homebuyers.
Loans issued under market conditions also saw a rise, increasing by 13%, to 46 billion rubles in June 2025. This suggests a growing confidence in the market among both borrowers and lenders.
The mortgage portfolio, including securitized parts, stood at 20.8 trillion rubles in June 2025, marking a 0.7% increase quarter-over-quarter. The mortgage portfolio, excluding securitized parts, amounted to 20.4 trillion rubles, increasing by 0.3% monthly.
The annual growth of the mortgage portfolio slowed down to 3.3% from 6.1% the previous month, indicating a stabilisation in the market's growth rate.
The proportion of loans under share participation agreements (DDA) decreased to 21.2% in June 2025, with a monthly decrease of 0.5%, showing a slight decrease compared to the previous quarter.
In conclusion, the Russian mortgage market witnessed a robust growth in Q2 2025, driven primarily by state-supported preferential programs. The trend towards new housing and a stabilising growth rate bodes well for the future of the market. However, for precise details and specific factors driving this growth in Q2 2025, it is recommended to consult the official DOM.RF publications or their Q2 2025 mortgage activity report directly from their website or official channels.
- In the realm of personal-finance, the rise in mortgage activity in Russia during Q2 2025, primarily driven by preferential business programs, could potentially impact homebuyers seeking affordable housing options.
- The surge in mortgage lending in Russia's business sector, especially during Q2 2025, might attract interest from investors looking to capitalize on the growing market for personal-finance products like mortgages.
