Demand for housing in the primary market in cities with a population of over 500,000 people on February 28, when the Bank of Russia raised the key rate from 9.5% to a historically record 20% per annum, increased by 53% compared to the average value on February 21-27, in the secondary market – by 44%, according to a study by the Cyan real estate search service. The document is at the disposal of Vedomosti.
In Moscow and its region, the figures increased by 31% and 50%, respectively. Demand for real estate in new buildings in St. Petersburg and the Leningrad region increased by 41%, for finished housing – by 39%.
The head of “Cyan. Novostroyki” Victoria Kovtun identified two reasons for the rush demand for real estate. She noted that “highly liquid objects” — studios and one-room apartments — are in the greatest demand.
“Many potential buyers tend to buy and choose an object on a previously approved mortgage at a lower rate, as well as manage to get a mortgage in those banks that have not yet had time to change mortgage programs. Some people are looking for a safe haven for money that has been massively withdrawn from bank accounts since the end of last week. And real estate has always been considered a reliable means of preserving capital,” she said.
The head of “Cyan.Analitika” Alexei Popov warned of a possible rise in the price of housing in the primary market, as developers may try to capitalize on the rush demand. In addition, the increase in the cost of building materials and logistical problems may contribute to the rise in prices, he noted.
Yesterday, the Central Bank announced an increase in the key rate to 20% per annum. The regulator explained that now the external conditions for the Russian economy have changed dramatically, and such a step will allow raising deposit rates to the levels necessary to compensate for the increased devaluation and inflation risks. The Central Bank believes that the measure will also support financial and price stability in the country and protect citizens’ savings from depreciation.
Against this backdrop, banks raised interest rates on loans. The mortgage rate for housing under construction and finished housing in Sberbank increased from 11.3 to 18.6%. VTB raised rates by 4 percentage points to 15.3% for both finished and under construction housing.