The share of installments for the purchase of housing will grow 1.5 times by the end of the year

Developers are one and a half times more likely in the second half of the year to sell apartments in installments in houses with a long deadline, the federal development company "People" told Izvestia on Saturday, July 26.

"Since the beginning of the year, the share of installments for the sale of apartments in new buildings has decreased 1.5–2 times. The consistently high key rate increased the risks of terminating installment agreements when putting houses into operation, since it was problematic for many Russians to get a mortgage loan for the remaining amount of debt at current rates," explained Denis Zhalnin, General Director of the federal development company People.

According to him, a steady reduction in the key rate and the Central Bank's forecast for its average value in 2026 of 12-13% is a positive signal for the real estate market and an additional incentive for both developers and home buyers to use installments more actively.

"Another catalyst for the growth in the share of installments for the sale of new buildings may be restrictions on family mortgages, if in August this year it is decided to reduce the increased budget compensation for granting preferential loans to banks. In this case, the availability of a family mortgage may decrease, and the role of installments in sales may grow even more," the expert continued.

Sergey Zaitsev, Sales Director of the federal company Floors, agreed with him.

"Since the beginning of the year, the share of apartment sales in new buildings using installments has been steadily decreasing. If in January it was at the level of 35-40%, then by July it had decreased to 18-20%. Many developers have limited this tool in their sales, minimizing the risks of termination of such contracts if mortgage loans are unavailable," he said.

According to Zaitsev, by the end of the year, the portrait of the buyer of apartments in new buildings may also change. With an optimistic forecast for the key installment rate, those who are not eligible for a family mortgage will begin to apply more often, hoping to get a loan closer to putting the house into operation at a more adequate rate than it is now.

"The growth in the share of installments can only be restrained by restrictions from the Central Bank if it decides to introduce strict measures to regulate them, but in the meantime, the most positive scenario is developing for the widespread distribution of installments in the second half of the year," Zaitsev summed up.

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Earlier, on July 17, Dmitry Sofronov, Commercial Director of DARS Group, said that developers had refocused on projects at the final stage of construction and were actively implementing preferential programs, including special installment payment terms until completion of construction.

Prior to that, on July 15, Elizaveta Danilova, head of the Financial Stability Department of the Bank of Russia, told Izvestia that developers had begun to find ways to circumvent the requirements of the law, which implies that installments are issued only for apartments in buildings under construction. In some cases, due to the installment plan, the client may find himself without an apartment and lose the deposited money, the press service of the Central Bank clarified.

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