The Russian mortgage bubble is bursting: housing sales fell by 17%

According to hvylya.net: In Russia, the revenue of development companies from January to September 2025 decreased by 8% compared to the previous year, totaling 2.9 trillion rubles. According to the Center for Counteracting Disinformation, this is the first decline since the beginning of the 'mortgage boom' in Russia.

Sales also fell by 17%, to 14.4 million square meters. The mass segment of residential construction was particularly affected. The number of new projects decreased by 19%, indicating developers' distrust in future demand due to the high cost of mortgage lending.

The main reason for the crisis is the high cost of mortgage lending. Mortgage interest rates exceed 20% per annum, despite the Central Bank of Russia's reduction of the key rate. Under such conditions, purchasing housing has become unattainable for ordinary Russian families.

The crisis in housing construction indicates systemic problems in the Russian economy against the backdrop of rising military expenditures and declining real incomes of the population. Furthermore, this could lead to further negative consequences for jobs in regions where the construction sector is significant for the economy.

In Russia, mortgage rates exceed 20% per annum, making housing accessibility difficult for the population, causing a decline in activity in the real estate market and potential structural problems for the country's economy.