Experts predict a collapse of the Russian real estate market if the key rate is raised

CrimeaPRESS reports:

In the event of a new increase in the Central Bank’s key rate, consumer demand in the real estate market will decrease by 35-40% due to higher mortgage prices. This opinion in conversation with aif.ru expressed by the president of the SRO “Regional Association of Appraisers” Kirill Kulakov.

We can expect a repeat of the picture in the spring of 2022, when in all market segments demand fell by an average of 35-40%said Kulakov.

As the expert noted, in the first half of this year, solvent buyers began to move to the secondary market, where housing prices became lower than for apartments under construction. A further increase in the key rate will lead to prohibitively expensive mortgages for finished apartments. Another negative factor, in his opinion, is the decision to tighten the requirements for preferential mortgages: this week the minimum down payment increased to 20%. All this taken together, the expert believes, will cause stagnation in the residential real estate market.

source: «Moscow’s comsomolets»

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