Demand for mortgages on individual housing construction in Tatarstan increased by 1.8 times

In 2023, in the Republic of Tatarstan, mortgage loans for individual housing construction (IHC) were issued in the amount of 2.6 billion rubles, this is 1.8 times more than the result of 2022, noted the director of retail sales of Kazan regional center of the bank DOM.RF Elvira Pribylskaya. 470 families began building a private house.

Private house construction accounted for approximately a third of transactions completed in Tatarstan. The region entered the top 5 constituent entities of the Russian Federation in terms of individual housing construction lending volumes. In total, since the launch of individual housing construction lending in 2021, over 800 loans have been issued in the amount of 4.3 billion rubles.

“Individual housing construction is a significant segment of the housing market, the interest in which has grown significantly. At the end of 2023, about half of all housing commissioning in Tatarstan will be private houses — 1.7 million square meters. m. We expect a further increase in demand for this format of accommodation. We see further potential in the transition of the market to a civilized footing and the introduction of an escrow mechanism with a secure financing mechanism similar to apartment buildings,” noted Elvira Pribylska.

The majority of transactions in 2023 were completed by millennials (1977 Born in 1995) — about 80% of all loans for individual housing construction. Young people (born in 1996) accounted for 9%. And representatives of older age (born 1960–1976) registered 11%. At the same time, more than half of the borrowers in the individual housing construction segment are men (59%). The proportion of married clients increased to 78%. In 32% of cases, private houses were bought with a mortgage by families with one child, in 28% — with two children. Another 7% of transactions were completed by clients with many children. Every third person currently does not have children.

Aerated block houses were the most popular — 46%. Next comes wooden house construction — about 23% of transactions processed by the bank last year. The construction of brick houses accounted for 12.5%. Houses made of panels and monolithic buildings occupied 10% in approximately equal proportions.