Portfolio of loans to developers expands by 5% over 2025 Q1
In 2025 Q1, banks continued to actively lend to developers, with the amount of project finance growing by ₽0.4 trillion to ₽8.7 trillion. The dynamics of the portfolio were associated with slower commissioning of construction projects, which decreased the loan repayment rates.
Over the past quarter, apartment sales under shared construction agreements were up by 6%. The total balance of escrow accounts increased less significantly, namely by 2% to reach ₽6.5 trillion. The reason for this difference is that developers are widely using instalment schemes to sell housing, due to which the funds are credited to escrow accounts more slowly.
Over 2025 Q1, the weighted average interest rate on loans to developers rose by 0.9 pp to 10.4% per annum, while staying considerably below the market rate. The main driver of the growth is a gradual replacement of earlier issued loans with new ones at higher interest rates.
More details are available in the review Project Finance in Housing Construction in 2025 Q1.