The tightening of conditions for preferential mortgage loans has upset the business plans of real estate developers in Russia. In the first quarter, almost three quarters of companies (73%) did not meet their sales plans, according to a survey conducted by Dom.RF, VTsIOM and the Institute for the Development of the Construction Industry.
This is the worst result in the last two years, analysts from Dom.RF note. They explain the decline by the excessively high expectations after the record fourth quarter of 2025, but also by the reduction in the number of mortgage loans granted with state support.
At the end of last year, 87% of developers met or even exceeded their sales targets.
Both the success back then and the subsequent setback were largely determined by the modification of the conditions of the “family mortgage” program with a 6% interest rate, the most popular state support scheme.
Since February, the Ministry of Finance has reduced the compensations offered to banks for these loans and has allowed families to benefit from only one preferential loan. Previously, both the husband and the wife could separately contract such loans.
Many have tried to take advantage of the last favorable conditions before the changes, which led to a sharp increase in lending in December and January, followed by a steep fall.
In December, mortgage loans were granted amounting to 811 billion rubles (approximately 8.8 billion euros) — the third highest level in history. In January, 425 billion rubles were granted (approximately 4.6 billion euros), and in February and March, the volumes decreased to 290 and, respectively, 330 billion rubles (about 3.1 and 3.6 billion euros).
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