In the first quarter of 2025, banks continued their lending activities to developers, with project finance increasing by ₽0.4 trillion, reaching a total of ₽8.7 trillion. This growth in the loan portfolio is linked to slower completion rates of construction projects, which has led to a decrease in loan repayment rates.
During the same period, apartment sales under shared construction agreements rose by 6%. However, the total balance of escrow accounts saw a smaller increase of 2%, amounting to ₽6.5 trillion. This discrepancy is attributed to developers’ widespread use of installment schemes for housing sales, causing funds to be credited to escrow accounts at a slower pace.
The weighted average interest rate on loans to developers increased by 0.9 percentage points over the quarter, reaching 10.4% per annum while remaining significantly below market rates. The primary factor driving this increase is the gradual replacement of previously issued loans with new ones at higher interest rates.
Further information can be found in the review titled “Project Finance in Housing Construction in 2025 Q1.”
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