The Russian mortgage market is experiencing a significant downturn, with new data showing a sharp decline in the number of loans issued in the first quarter of 2025. According to recent statistics, 127,600 mortgage loans were issued, totaling 551.03 billion rubles. This marks a staggering 52% decrease compared to the same period in 2024, when 266,770 loans were issued for a total of 1.1 trillion rubles.
In comparison to the fourth quarter of 2024, the situation appears even more dire. The number of loans decreased by 38%, while the total volume dropped by 37%. In the last quarter of 2024, there were 207,210 loans issued, amounting to 870.07 billion rubles. This downward trend signals a troubling shift in the mortgage landscape.
However, there was a slight uptick in activity in March 2025. The number of mortgages issued increased by 7% from February, rising to 52,000 loans for a total of 230.1 billion rubles, up from 48,430 loans worth 209.86 billion rubles in February. Additionally, the total volume saw a 10% increase, and the average loan amount rose by 2%, reaching 4.33 million rubles in February.
The average loan term also extended, increasing by half a year to 266 months, or 21 years and 8 months, compared to 260 months in February.
Despite this momentary increase in March, year-on-year metrics continue to show a decline. The number of mortgage loans issued in March 2025 fell by 53% compared to March 2024, when 109,550 mortgages were issued for 475.61 billion rubles. The mortgage volume also decreased by 52% during this period.
Interestingly, the average mortgage loan amount saw a 2% increase, amounting to 4.42 million rubles compared to 4.34 million rubles a year earlier. However, the average loan term for the same period decreased by three months, from 269 months (22 years and 5 months) to 266 months (22 years and 2 months).
In March, the mortgage portfolio structure revealed a significant shift towards new buildings, which accounted for 52% of the total number and 65% of the volume of mortgage loans issued. The average loan amount for purchasing apartments in new buildings reached 5.58 million rubles, with the average loan term increasing to 318 months (26 years and 6 months).
For comparison, in March 2024, new buildings made up 36% of the total number and 49% of the mortgage market volume, with an average loan amount of 5.5 million rubles and an average term of 303 months (25 years and 3 months). In February of this year, the average loan amount was 5.52 million rubles, the average term was 316 months (26 years and 4 months), and new buildings accounted for 55% of the total number and 69% of the total mortgage lending volume.
The secondary market also showed notable figures in March, with the average mortgage amount reaching 3.31 million rubles and the average term at 244 months (20 years and 4 months). A year earlier, these figures were 3.2 million rubles and 250 months (20 years and 10 months), respectively. In February, the average loan amount for purchasing secondary housing was 3.02 million rubles, with an average term of 228 months (19 years).
Regionally, the largest volumes of mortgage lending were recorded in five areas. In Moscow, 4,500 loans were issued for a total of 31.35 billion rubles. The Moscow region followed with 3,280 loans for 19.41 billion rubles, while St. Petersburg saw 2,490 loans totaling 14.16 billion rubles. The Krasnodar Territory issued 1,770 loans for 8.16 billion rubles, and Tatarstan had 1,640 loans worth 7.48 billion rubles.
In terms of average loan amounts, residents of Moscow received the highest at 6.97 million rubles, followed by the Moscow region at 5.92 million rubles, and St. Petersburg at 5.68 million rubles.
As the mortgage market continues to navigate these challenges, it remains to be seen how these trends will evolve in the coming months. With the data indicating a clear decline, stakeholders in the mortgage sector are left to ponder the implications of these shifts on the broader economy.
