Mortgage Financing May Enable Just 15% of Russia's Population to Buy Homes

About 15% of Russia's population can buy homes and about 40% can improve their housing conditions with the use of mortgage financing. The figures come from the report of the State Committee for Construction entitled On the Measures to Develop Housing Mortgage Financing'.

According to the committee, Russia's construction industry can increase the production of new housing by a factor of 2 or even 3 without any significant additional investments, to produce annually between 70 and 80 million square meters of new housing floor area. At this time, construction companies annually satisfy the needs of 1.5% of the country's population, while 80% of the population need any or better housing. The committee noted that unless mortgage financing becomes available, 60% of the population will remain unable to exercise their constitutional right to have housing for all foreseeable future.