Development loan portfolio reaches ₽5 trillion
In 2023 Q1, project finance in housing construction grew by 5% to reach ₽5.0 trillion, with lending limits up by 6% and totalling ₽12.9 trillion. However, growth slowed down amid a reduction in the launches of new projects and a big number of commissioned facilities at the start of the year.
Residential property sales edged down in the primary market compared to 2022 Q4 affecting the pace at which escrow accounts were topped up. Given the big volumes of completed projects, balances in escrow accounts increased negligibly (+1%, to ₽4.2 trillion). Developers’ commitments under loan-financed projects exceed the amount of funds in escrow accounts by almost ₽1.0 trillion, and this gap continues to widen.
More details on financing trends in equity construction are available in the review Project Finance in Housing Construction in 2023 Q1.