Russia's 2% Arctic mortgage scheme fuels housing boom in remote regions
Russia’s Far Eastern and Arctic Mortgage (FEAM) program has boosted housing growth in remote regions. The initiative, offering loans at just 2% annual interest, aims to attract residents and develop local economies. Since its launch, construction activity has surged, with new homes and infrastructure expanding rapidly. The program began with a clear target: encourage people to settle in Russia’s Far East and Arctic areas. By providing low-interest loans, it has made homeownership far more accessible. In 2025 alone, borrowers secured over 190 billion rubles in FEAM funding.
New-build apartments have become the top choice for buyers, with nearly half of all borrowers opting for them. The impact on construction has been striking. In the Far Eastern Federal District, completed housing space jumped from 2.5 million square meters in 2019 to 4.7 million in 2025. Overall construction volumes in the region have tripled since the program started. The Arctic Zone has also seen progress. In 2024, its first full year under the scheme, new housing starts rose by 40%. Loan approvals have remained steady, never dipping below 30,000 annually over the past three years. Yet challenges persist. Funding for new properties remains limited, and much of the existing housing stock is aging. These issues could slow future growth if left unaddressed.
FEAM has already transformed housing markets in Russia’s Far East and Arctic regions. More homes are being built, and infrastructure is improving as a result. However, sustaining this growth will depend on overcoming funding constraints and modernising older housing.
