Balances in escrow accounts reach 4 trillion rubles
In 2022 Q2, more than 3.9 trillion rubles were placed in escrow accounts opened with banks for participants in equity construction.
Furthermore, the inflow of households’ funds decreased due to a decline in mortgage lending and housing sales in general, especially in April—May. However, this had no effect on the average rates in project financing for housing construction and the growth pace of construction companies’ debt.
Developers’ outstanding loan amount increased to 3.6 trillion rubles and already accounts for 7.2% of the total corporate portfolio. In early Q2, there was a short-term decline in the number of new transactions for housing construction. However, already in June, the amount of financing for new projects returned to the pre-crisis level.
Government measures to support mortgage lending, lower interest rates and, as a result, higher households’ demand for residential property will contribute to a gradual recovery of housing sales in Q3 and, accordingly, the growth of funds in escrow accounts.
More details on financing trends in equity construction are available in the review Project Finance in Housing Construction in 2022 Q2.