Developers’ project finance rises by ₽0.7 trillion in 2024 Q3
The growth of the developer loan portfolio slowed down to 9% in 2024 Q3 (from 13% in 2024 Q2) but remained strong due to an increasing volume of housing under construction. The total portfolio exceeded ₽8.0 trillion.
In the third quarter, ₽1.2 trillion were credited to escrow accounts, which was 24% less than in the previous quarter. However, the sizeable credits to escrow accounts in the second quarter were largely associated with elevated demand fuelled by the anticipated termination of the Subsidised Mortgage programme and changes in the Family Mortgage programme terms in July 2024.
The balance in escrow accounts rose moderately by 3% to ₽7.0 trillion. As loans were growing faster than credits to escrow accounts, the coverage of developers’ debt by balances in escrow accounts fell noticeably (by 7 pp) but remained at a quite high level of 81%. As a result of the drop in the coverage and the overall growth in interest rates, the average weighted rate on loans to developers was up to 7.9% but stayed significantly below market rates.
More details are available in the review Project Finance in Housing Construction in 2024 Q3.