Russian housing price growth has slowed to between 6 and 7 percent in 2026, Russian Guild of Realtors president Irina Zyryanova said.
Zyryanova told the TASS news agency in an interview that residential real estate prices across the country are currently increasing within the rate of national inflation.
She explained that while exact figures vary depending on the specific region and real estate segment, overall price growth has decelerated noticeably across the market. She attributed this shift primarily to borrowing costs, noting that high mortgage interest rates have significantly altered buyer behavior.
Historically, mortgage loans accounted for 60 to 80 percent of all residential property transactions in Russia. However, Zyryanova stated that fewer citizens can now afford standard commercial mortgages with rates reaching 17 to 18 percent, or meet the requirements for subsidized family mortgage programs.
Impact of High Borrowing Costs
The Russian Guild of Realtors is a national professional organization that represents real estate brokers, property agencies, and industry experts across the Russian Federation. High central bank policy rates typically force commercial lenders to raise interest on home loans, reducing overall affordability for prospective homebuyers.
Preferential family mortgages in Russia are state-supported lending programs created to help eligible households purchase homes at reduced interest rates. As qualification criteria tighten and commercial rates remain high, total transaction volumes across both new developments and resale properties tend to contract.
Expectations for Interest Rate Reductions
Earlier, State Duma committee on construction and housing deputy chairman Alexander Aksenenko forecast a potential decline in market mortgage rates. Aksenenko predicted that standard commercial mortgage rates in Russia could drop to between 16 and 17 percent by the end of 2026.
The State Duma is the lower house of the Federal Assembly of Russia, responsible for drafting legislation on economic policy, housing regulation, and civic infrastructure. The committee on construction and housing oversees national housing development projects, municipal infrastructure standards, and real estate market legislation.
