The growth rate of the portfolio of loans to developers increased from 6% in Q1 2024 to 13% in Q2 2024, following a rapid increase in housing under construction. As a result, the total portfolio reached ₽7.4 trillion.
Funds credited to escrow accounts amounted to ₽1.6 trillion, which is more than 1.5 times higher quarter-on-quarter and close to a record high of ₽1.9 trillion hit in Q4 2023. This trend was driven by rising sales in anticipation of the termination of the Subsidised Mortgage programme (loans at 8%) and changes in the Family Mortgage programme terms.
Over the quarter, the balance in escrow accounts increased by ₽1 trillion to ₽6.8 trillion. The coverage of developers’ debt by balances in escrow accounts stayed at a fairly high level of 88%, which is 3 percentage points more than in Q1 2024. Consequently, the average interest rate on loans to developers barely changed, remaining quite low at 6.9% per annum.
More details are available in the review Project Finance in Housing Construction in Q2 2024.
Preview photo: Valentin Antonov / TASS