Suggested Refusal of Granting Family Mortgages to Foreigners by Matviyenko
In a recent meeting with Prime Minister Mikhail Mishustin, the Chair of the Federation Council of Russia, Valentina Matviyenko, proposed limiting the issuance of family mortgages in an effort to reduce interest in capital markets, particularly in St. Petersburg, Moscow, and surrounding areas. However, the exact details about the impact of this proposal on the housing market are not provided in the article.
Meanwhile, experts are assessing the impact of expanding mortgage subsidies on prices in the St. Petersburg housing market. Ilya Grachenkov, a person mentioned in the context of this issue, questions whether the mortgage subsidy will return. If adopted, Matviyenko's proposal could potentially lead to a decrease in demand, redistribution of deals, and price correction, with developers potentially losing 20-25% of potential clients.
In the first half of 2025, 9,28 thousand family mortgage loans totaling 71 billion rubles were issued in St. Petersburg, with 5,19 thousand loans issued in the Leningrad region during the same period. Approximately 40% of buyers in St. Petersburg are from other regions, according to Matviyenko. If her proposal regarding housing subsidies is implemented, it could affect this demographic significantly.
Matviyenko also suggested admitting only as many students as are needed for relevant specialties in St. Petersburg universities, and for the rest to study at their home regions, citing concerns about the quality of education and the oversupply of certain specialists in the labor market.
Currently, there is no direct information about policies in St. Petersburg specifically about expanding mortgage subsidies for luxury housing purchases or construction. However, economic conditions and housing market trends indicate that any such measures could aim to attract high-income buyers and support luxury housing demand despite broader economic headwinds.
The real estate market in reconstructed and newly developed areas like Mariupol shows a trend where new housing targets wealthier buyers, often through preferential mortgages that are affordable mostly to higher-income individuals. St. Petersburg is actively engaged in attracting investment and formalizing economic agreements, but does not specify mortgage subsidy policies.
The Russian economy faces strain and is on the brink of recession, which could impact housing demand and government spending capacity, including subsidies. Additionally, many international luxury brands are withdrawing or reducing operations in Russia, signaling a potential contraction in luxury consumer markets, including luxury housing demand among high-net-worth individuals.
In summary, while there is no explicit current policy information about expanding mortgage subsidies for luxury housing in St. Petersburg, economic conditions and housing market trends indicate that any such measures could aim to attract high-income buyers and support luxury housing demand despite broader economic headwinds.
- The ongoing discussion about expanding mortgage subsidies in St. Petersburg's housing market falls under the broader category of policy-and-legislation in Russia.
- The proposal by Valentina Matviyenko to potentially limit family mortgages might lead to a shift in focus towards politics, as its impact on housing demand and the economy could be significant, especially in relation to luxury housing.
