Developers’ project finance amount rises by ₽0.9 trillion over 2024 Q2
The growth rate of the portfolio of loans to developers was up from 6% in 2024 Q1 to 13% in 2024 Q2, following a rapid increase in housing under construction. As a result, the total portfolio reached ₽7.4 trillion.
Funds credited to escrow accounts amounted to ₽1.6 trillion, which is more than 1.5 times higher quarter-on-quarter and close to a record high of ₽1.9 trillion hit in 2023 Q4. This trend was driven by rising sales in anticipation of the termination of the Subsidised Mortgage programme (loans at 8%) and the changes in the Family Mortgage programme terms.
Over the quarter, the balance in escrow accounts increased by ₽1 trillion to ₽6.8 trillion. The coverage of developers’ debt by balances in escrow accounts stayed at a fairly high level of 88%, which is 3 pp more than in 2024 Q1. Consequently, the average interest rate on loans to developers barely changed, remaining quite low (6.9% per annum).
More details are available in the review Project Finance in Housing Construction in 2024 Q2.