Trends and prospects of the housing and mortgage markets in Russia

The largest non-bank refinanced the company "ATTA Mortgage" summed up the development of housing and mortgage markets in Russia in 2007. The housing sector continues to be one of the most important and, unfortunately, the problem areas of the Russian economy. The mortgage market in 2007: state of the mortgage and housing markets in 2007 in the wake of the liquidity crisis the fall of interest rates to a halt. Previously expected market liberalization (reducing down payment, reducing the list of documents required for the acquisition of real estate, reducing the time for consideration of applications for loans, etc.) delayed by at least a year and now depends on the requirements of investors. Thus, growth in the number of transactions involving mortgages, has slowed. The amount of transactions with borrowed funds in 2007 amounted to slightly less than 1 percent of projected GDP. According to optimistic forecasts, in 2010 this figure will rise to 2-2.5 percent. "These figures allow us to two important conclusions: first, that the Russian mortgage market compared with other countries is now at zero, and, secondly, most importantly, the development potential of his very high. Mortgage in Russia, despite all the difficulties encountered, continues its development ", - summed up the general director of" ATTA Mortgage "Alexander Chernyak. Problems and prospects of current market conditions continue to make the company the creditor to tighten requirements for borrowers and collateral. Nevertheless, despite the current market situation, the urgency of the mortgage as a tool for solving the housing problem in Russia, no doubt, and a return to the stage of intensive development of mortgage lending and refinancing loans - this is only a matter of time. As noted by Alexander Chernyak, "we can expect that the secondary mortgage market in Russia in the next two years will continue to grow. Foreign investors will inevitably be drawn to the Russian mortgage market as dynamic and capable of providing a sufficient return on capital at a comparable level of risk. Will be held before the transaction pending securitization. The cost of borrowing, although it will exceed pre-crisis levels is likely to be acceptable from an economic point of difference. "