The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Russia’s middle class see value in bricks and mortar

Apartment developments in suburban
Moscow: mortgage interest is high
but tax incentives make property
investment attractive


Russia's re-emerging middle class is driving strong growth in the country's embryonic mortgage market as pent-up housing demand and limited supply have caused property prices to soar 30% in Moscow and St Petersburg in the past year.

It's a significant development indicating that Russians are finally losing their aversion to long-term financial commitments and reflects a growing popular belief that today's economic growth is more stable than in the past.

Mortgage lending in Russia is still in its infancy and is currently estimated at less than $100 million but it's a market that is set to expand rapidly.

"Based on the number of real-estate transactions that occur every year in Moscow and St Petersburg and the buying power of the middle class, we think it's potentially about an $80 billion market," says James Cook, chairman of Delta Credit, Russia's leading mortgage lender.

Delta is Russia's first dedicated mortgage bank, established in 1998 and backed by third-party investors such as the European Bank for Reconstruction & Development and the International Finance Corporation.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree