73% of Russian Developers Miss Q1 Sales Targets as 6% Mortgage Curbs Hit Demand

1 articles · Updated · The Moscow Times · May 25

Nearly three-quarters of Russia’s residential developers missed first-quarter sales targets, the weakest result in two years, after 87% had met or exceeded targets in the previous quarter.
February rule changes to the flagship 6% family mortgage cut bank compensation and limited households to one subsidized loan, ending a buyer rush that had pushed mortgage issuance to 811 billion rubles in December.
Sales have lagged even as builders kept adding supply: 88% met current construction targets, and developers launched 14 million square meters in January-April, up 18% from a year earlier, while new-apartment sales rose 7.5%.
That imbalance is already squeezing the market, with new-build prices up 2.2% in Q1 against 3% inflation, implying a 0.7% real decline.
Financing conditions are also tightening: access to bank funding fell from the previous quarter, one in five developers risks escrow shortfalls, and analysts close to the government warn of a construction slump lasting two to three years.

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