The state has been actively supporting the construction industry in recent years. In 2018, when Vladimir Putin became president for the fourth time, he signed a decree on national projects.
One of them was the national project “Housing and Urban Environment”. It was supposed to provide affordable housing to everyone who needs it and to deliver at least 120 million square meters annually by 2030.
One of the elements of the national project was the federal project “Mortgage”, according to which at least 5 million families per year should improve their housing conditions by 2030. The national project included an average mortgage rate of 7.9% in 2024.
Over the past few years, preferential mortgage programs launched in 2020 after the start of the COVID-19 pandemic have gained popularity on the Russian market. This has led to active housing construction and an equally active increase in prices for it. Thus, in Moscow in 2021, new buildings increased in price by almost a third, and in 2022 – by 21%. Since 2023, the regulator began to actively raise the key rate, seeking to curb inflation and cool lending. From July 1, 2024, preferential mortgages were canceled, and rates on market programs with a key rate of 21% actually became prohibitive.