Russian Property Crisis - Joe Blogs

In this video I talk about the impact of the recent interest rate increases on the Russian Real Estate sector and how this will hurt the Russian Economy. Real Estate contributes around 10% of Russian GDP and the market has been booming over the past few years due to the introduction of subsidized mortgage scheme in April 2020. This scheme was withdrawn in July 2024 and over the past 18 months mortgage rates have skyrocketed in line with the increase in the official rate of interest. Sberbank, which is Russia's largest mortgage lender recently increased its mortgage rate to 28% and other lenders are offering rates as high as 43%. This huge increase in costs and the removal of subsidized mortgages is having a devastating impact on both the Property Market and the Russian Economy.

Chapters:
0:00 Intro
1:31 CONSTRUCTION
2:47 MORTGAGES
3:34 MORTGAGE RATES
6:21 PROPERTY PRICES
7:31 OUTPUT
8:21 SUMMARY & CONCLUSION