Mortgage rates for individual housing construction in Russia are decreasing.

      The largest Russian banks, in light of signals from the Central Bank, have begun a gradual reduction in interest rates for market mortgage programs for individual housing construction (IHC), lowering them below the psychological mark of 20%. Financial organizations and developers are recording an explosive growth in applications and warning: the seasonal window of opportunity for borrowers is closing.

      Start of the season without delay

      As reported by RBC from VTB's press service, May 2026 showed an increase in demand for market loans for IHC of more than 20% compared to April. The bank attributes this to the departure from the wait-and-see position of citizens. "The construction season is in full swing, and we see that clients are no longer waiting for the perfect moment. Borrowers themselves say that rates are decreasing, and it's time to act. The main thing is not to miss the season," commented Alexey Okhorzin, Senior Vice President and Head of the Retail Business Products Department at VTB, on the situation ahead of the St. Petersburg International Economic Forum 2026. Starting June 1, the bank lowered rates for IHC by another percentage point.

      Rates: slow decline instead of "plateau"

      After peaking at 21-22% per annum at the beginning of the year, market rates for loans for house construction (by own means or by contract) fell to a range of 18-19.5% by the end of spring. The main driver is the banks' adaptation to expectations regarding the trajectory of the Central Bank's key rate in the second half of the year. For market programs, the reduction has amounted to 1.5-3 percentage points since the beginning of the year. If the current inflation trend continues, market participants expect a decline to 16-18% by autumn. Rates for "Family Mortgage" and "Far Eastern" remain anchored. After a period of freezing limits in 2025, banks resumed active lending, making the use of escrow accounts a mandatory standard for contracts.

      The market confirms the excitement

      VTB's thesis about the growing interest in suburban real estate is confirmed by data from other key players. Thus, DOM.RF recorded a 15% increase in the number of loans for IHC with escrow in one month. The state company notes a structural shift: every second house is now being built by a professional contractor rather than by own means, which increases the reliability of loan portfolios. Data from CIAN indicates a steady flow of clients from the secondary apartment market. The construction economy is favoring houses: a square meter in the suburbs costs 25-35% less than a similar apartment in a metropolis.

      Summer forecast and risks

      Analysts have raised the annual forecast for IHC mortgage issuance to 580-650 billion rubles, which is 30-40% higher than the figures for 2025. The share of "suburban" in the overall mortgage pool could reach a record 26-27%. Experts warn that a constraining factor for those who postpone decisions until autumn will be the rising cost of construction. It is expected that in the second half of the year, ready houses and contractor services will increase in price by 5-8% due to labor shortages and rising material costs. "The window of opportunity that VTB talks about really exists. While rates have entered a phase of slow decline and building materials have not skyrocketed at the peak of the season, borrowers prefer to act to lock in contract costs and manage to build a house before the cold," summarize market participants.