Mortgage lending is shifted to the regions

Despite the sharp rise in prices for Moscow real estate, the amount issued in Russia mortgages continues to double every six months. According to CB, in the first half of this year's volume of mortgage loans was 104.5 billion rubles. compared to about 52.5 billion rubles. in the second half of 2005. The market shifted to the regions, experts explain. "According to the Central Bank on July 1, 2005, the volume of mortgage loans amounted to 26 billion rubles., On January 1, 2006 - 52.5 billion rubles., And on July 1, 2006 - 104.5 billion rubles already." - said yesterday Rossiyskoyaponskom Economic Forum President of the European Trust Bank, Chairman of the Mortgage Committee of the Association of Russian Banks Andrew Krysin. According to the Rat, mortgage market participants expect that in 2006 it should be doubled and reach $ 6 billion, but if until recently the main increase in the number of loans provided Moscow, now go forward regions. "Increase in the number of deals by region is 70-90%, in Moscow, about 70%," - said a board member of City Mortgage Bank Igor Zhigunov. "The number of mortgages issued by our regional offices (Bank is active in the Moscow region), while small. But it is already about 60% of loans have property outside of Moscow," - said Deputy CEO of Absolut Bank Oleg Skvortsov. And in the Russian mortgage bank, which operates only in the Moscow market, said that the number of loans has diminished recently, although their amount of the increase in housing prices rose. In the first half of 2005, the bank has issued 299 loans, and for the same period this year - only 233. Real Estate Market Participants agree with the bankers. "The number of mortgage transactions in the capital is growing, but not as fast as we would like," - said General Director of "Laurel, real estate," Irina Radchenko. According to her, for the first half on the Moscow real estate prices increased by 30-40% and the number of mortgage transactions is steadily growing by 50%. "If housing prices were half the size by 15-20%, number of mortgage deals in Moscow would increase to twice" - sure Radchenko. Bankers agree that the rise in prices - the main reason for the slowdown in mortgage Moscow. "The growth in apartment prices increased the gap between wanting to get a mortgage and the amount of actual purchases," - said the head of the development of loan products Vneshtorgbank 24 Maria Serova. "Increasingly, the approved loan amount is not enough to buy an apartment. Often the deal break down already in the process of credit" - agrees Head of the bank's own mortgage products "KIT Finance" Anton Karelin. The trend decline in the number of mortgage deals in Moscow and their growth in the regions emerged in late March, said Vice President of the European Trust Bank Vladimir Talavert. He explains the trend of "ideal ratio of incomes and property prices", which is observed in the regions. "If the region does not happen in real estate prices rise, the proportion of people having the opportunity to purchase an apartment for a mortgage, there will be even greater than in the capital" - CEO predicts "Fosborn Home" Paul stories. A Skvortsov added that the strong rise in the cost of housing in Moscow coincided with the development of mortgage offers in the region. "The capacity of the regional market infinitely more in Moscow," - he said, predicting its future growth. Expanding the number of regions that are home mortgage programs, in addition, there are beginning their programs, new participants, confirms Zhigunov.