Let’s start with mortgages:
1️⃣ According to the head of the State Duma Committee, mobilized citizens will continue to pay mortgages.
2️⃣ The Central Bank recommends that banks give credit holidays to mobilized citizens, do not charge a penalty, do not evict them from mortgage housing.
3️⃣ It is planned to introduce a bill by the end of the week on the payment by the state of payments on mortgages and car loans to mobilized citizens.
4️⃣ At the same time, the Deputy Minister of Finance said that the state would not share the mortgage risks of the mobilized with banks.
But so far, both credit holidays and government payments are just plans and recommendations. At the moment, partial mobilization does not remove mortgage obligations.
Mortgage defaults will rise. And the conditions will become less favorable. At least not without government subsidies.
Now about the real estate market itself. In short, difficult times await him.
Demand for housing will clearly be more sluggish than it is now:
▪️ People’s incomes are falling.
▪️ The mortgage boom is over.
▪️ Banks will be less willing to issue mortgages, as the risk of non-payment will increase.
▪️ Wealthy Russians now prefer to invest in foreign real estate. This year, citizens of the Russian Federation occupy a leading position among foreigners buying property in Turkey, Thailand, Georgia, Armenia, and the United Arab Emirates.
What will happen to real estate prices?
Under current conditions, prices will fall by the end of the year. How long and deep this fall will be is not obvious. It all depends on factors that we can neither predict nor control. I will say this. While events in the Russian Federation are unfolding as they are now, there is no reason to believe that real estate prices will go up. And the likelihood of their further stagnation is very high.