Mortgage approvals for Sakha residents witnessed a significant drop in the initial quarter of 2025, experiencing a decline of 2.7 times in comparison to the prior period.
In the opening quarter of 2025, a noticeable decrease in mortgage loans issued to Yakutians occurred, according to data from the National Bank of Yakutia. This represents a 2.7-fold decrease compared to the same period in 2024.
Out of the over thousand loans issued, approximately half were secured by real estate, with contracts for purchasing apartments on the primary market accounting for 415, while individual housing construction and purchase made up 168.
The monetary value of these mortgage loans dropped by 2.4 times compared to the first quarter of 2024, with a total of 5 billion rubles. of this amount, nearly 3.5 billion rubles were borrowed for purchasing apartments in new buildings, and 486 million rubles were for purchasing private houses.
Tatiana Drozhova, head of the economic department of the National Bank, explained that the demand for mortgage loans in Yakutia has significantly decreased. She cited the completion of the most significant state support program, high interest rates from the Bank of Russia, and the monitoring of banks' credit portfolios to ensure financial stability as contributing factors.
Additionally, the average weighted interest rate on housing loans in Yakutia ranged from 5.02% to 6.24% from January to March 2025. The average mortgage loan amount increased from 4.5 to 4.9 million rubles, with an average loan term of 22 years.
While there is no direct evidence confirming a significant decrease in mortgage loans issued to Yakutians compared to 2024, it is worth considering the broader Russian economic context. These factors may have contributed to the overall decline in mortgage loans across the country, including in Yakutia.
The Russian economy experienced a sharp slowdown in Q1 2025, with high interest rates, persistent inflation, and a decline in consumer confidence affecting businesses and households. Additionally, lower oil prices resulted in reduced government revenues, which may impact the availability of subsidized mortgage programs.
Banks have also likely become more cautious in approving mortgage applications due to economic instability and tight credit conditions. These factors, when combined, would contribute to a decrease in mortgage loan issuance compared to the previous year.
While Yakutia, as a region, may be less diversified and more vulnerable to macroeconomic shocks, these national trends would likely have a pronounced effect in regions like Yakutia.
- Constrained by economic instability and tight credit conditions, banks might have reduced the number of offered personal-finance options, such as mortgage loans, leading to a significant decrease in finance opportunities for Yakutians.
- In line with broader national trends, the decrease in mortgage loans issued to Yakutians might be a consequence of reduced availability of subsidized mortgage programs due to lower oil prices that impacted government revenues, as well as high interest rates and inflation affecting both businesses and households.
