Developers can expand buyout programs when buying a new apartment

Developers in Russia will expand programs for the purchase of housing when buying a new apartment, Vasily Timofeev, general director of the St. Petersburg construction company City Solutions, told Izvestia on August 17.

He drew attention to the fact that mortgage rates at some banks began to rise from the beginning of August. In his opinion, the recent rise by the Central Bank of the key rate by 3.5 percentage points, to 12% per annum, will further increase their growth. Timofeev suggested that most banks will raise rates to 15-16% in September-October.

“Those who planned to move out of rental housing into their own, most likely, will postpone the acquisition for now, so the demand for rent will not fall. But this does not mean that the real estate market will completely stop, among construction companies a struggle will unfold for two main groups of buyers: for those who go through various state programs of preferential mortgages, and for those who plan to purchase new housing by selling the old one, offering such a client various trade-in program options. With such interest rates, it will be difficult to sell an apartment on your own, so developers will expand programs for buying out housing when buying a new apartment, ”he explained.

At the same time, according to him, the popularity of furnished apartments will grow, as it will be much cheaper to buy housing that is completely ready for occupancy than to make repairs yourself.