Real estate and mortgage lending market in Russia: growth factors and constraints

The real estate market has been subject to high turbulence over the past few years amid unprecedented support measures for the purchase of housing for various population groups. On the one hand, the increase in the volume of support led to a revival in the construction market, but on the other hand, it provoked a significant growth of primary real estate, which called into question the effectiveness of the support measures. This article identifies and studies the reasons for the rapid increase in the rate of new housing, mortgage loans and price growth in Russia over the last 5 years. Risks and threats, such as, for example, collapse of mortgage lending, increase in the amount of unsold housing, which are facing the construction industry against the background of rise in the cost of primary housing. Based on the calculations made, the conclusions are formulated that at present the real benefit from the introduction of preferential mortgage lending for citizens has ceased to exist due to rising prices. The measures taken by the authorities to curb the growth of housing prices and further support of developers are analyzed, and in addition, their own solutions that can help to overcome the impending crisis situation are proposed.