Mortgage growth rates could outpace Central Bank's forecast of 7%-12% in 2024 - Nabiullina

SOCHI. Oct 17 (Interfax) - Mortgage growth rates could outpace the upper boundary of the Russian Central Bank's forecast of 7%-12% in 2024, as there has been no sharp decline in the segment following the cancellation of mass preferential mortgages, Central Bank Governor Elvira Nabiullina said on Thursday at a press conference.

"We have seen a cooling in the mortgage market after the cancellation of mass preferential mortgages, though we have seen that family mortgages have recovered rather quickly after a slight dip in mid-summer, when the parameters were being clarified. The current rate of issuance of family mortgages is in line with the first quarter of the year. We expect around 2.2 trillion rubles to be issued under family mortgages this year, comparable to the volume of issuances last year," Nabiullina said on the sidelines of the Finopolis 2024 forum.

The Central Bank's baseline scenario envisages mortgages to grow at a rate of 7%-12% in 2024.

"Many expected that there would be a very sharp decline after canceling mass preferential mortgages. The rate has been slowing, yes, and the rate of mortgage growth has been balancing. However, we expect that the rate of mortgage growth could overall be even higher than the forecast range that we have included as an estimate of balanced rates this year, namely that it could be even more than 12%," Nabiullina said.