The hottest topic of spring and the upcoming summer has become the cancellation of preferential mortgages for primary housing and the adjustment of other state programs. Experts from aif.ru confirm that news about this is boosting demand for new buildings, with the frenzy from buyers in May showing no signs of slowing down.
Will the demand for new buildings continue in June?
Realtors and developers are noting a decrease in transactions in the secondary market due to high mortgage rates. However, spring has shown that Russians are eager to take advantage of preferential mortgages before they expire or change.
— There are no exact numbers on transactions yet, but in our company, demand for new buildings in May increased by about 8-10% compared to April and by 15% compared to May 2023. The growth is noticeable, — says Olga Klapanyuk, Deputy Head of the New Buildings Department of the company “TSN Real Estate.” — With a high probability, we will continue to see an increase in demand for apartments in new buildings in June. Plus, many deals made at the end of May will be registered in June and will be included in the statistics for this month. As a result, the number of closed agreements for shared participation in many major cities in Russia will increase by 15-20% compared to June 2023. Then a expected drop will occur in the segment, the market will start to adapt to life under new conditions, without preferential mortgages and with stricter family conditions.
— The beginning of June still feels as “hot” as May. One can only hope that after the freeze of preferential mortgages, the “heat” in the primary market will not decrease, — agrees Oleg Dedkov, Managing Partner of “Live Complex LES”.
Will prices of new buildings rise?
June is likely to also increase sales for developers, even as prices rise, especially in quality residential complexes. As long as there are buyers, prices will continue to rise as planned until the end of the preferential mortgage programs, says Maxim Emelyanov, General Director of the real estate agency Loft Arena.
— Citizens’ deposits have reached a record amount of cash, and it continues to grow like a snowball. Moreover, if even a portion of these funds goes into the economy, we can see even greater price increases on real estate closer to autumn. With the limitation on parallel imports and risks associated with the stock market, our people have no choice but to buy real estate to somehow preserve their savings, — noted Emelyanov.
According to Olga Klapanyuk, there is unlikely to be a significant increase in prices for new buildings in June.
— Most likely, developers have already calculated everything, understanding that many conditions and parameters for mortgages with government support and family mortgages will soon change. They have set the prices that are most optimal for them at the moment. A small increase of 1-1.5% in specific projects is possible. But overall, prices in the primary market are likely to remain at today’s levels, — she believes.
If demand for new buildings remains high, this could also push developers towards further price increases. However, this may happen on a smaller scale than previously expected.
— Developers, anticipating a decrease in purchasing power after the end of mortgage support, have already taken steps to fix higher prices for their properties. They have already protected themselves from a possible drop in demand in June. After all, there was already a noticeable increase in prices in the new building market. Developers raised them, anticipating the market. So the price increase in June 2024 for new buildings will not be as pronounced. 
However, I do not exclude that some developers may still decide to raise prices for the most interesting and in-demand properties, — said Eva Kharitonova, Head of the family real estate agency “Agentessa”.
What will be offered instead of preferential mortgages?
The Central Bank of Russia has already stated that after the cancellation of preferential mortgages with government support, demand for new buildings will temporarily decrease. Developers are not expected to suffer much from this, as they have already taken care of their financial “safety cushion.” While everyone is waiting for news on how the new government-subsidized mortgage programs will look, developers are looking for ways to attract buyers.
— The cancellation of preferential mortgages will lead to an expansion of installment programs from developers. This practice is becoming increasingly popular. Installments can be interest-free or at “pleasant” rates of 8-12% per annum. The term runs at least until the date of the object’s commissioning, if the object is still under construction, and for several years after commissioning. Buyers are very interested in such programs, especially those planning to sell their property to buy new buildings and entrepreneurs who do not want to withdraw their funds from circulation all at once for a new home, — concluded Oleg Dedkov.