The Central Bank of Russia has published a review of project finance in housing construction showing that the portfolio rose by 1% in 2026 Q1 to RUB 10.3 trillion. Growth remained weak for a second consecutive quarter, reflecting active debt repayment by developers on completed projects, weather-related disruption to construction at the start of the year, and caution over launching new projects amid uncertainty about future demand. Credits to escrow accounts totalled RUB 1.3 trillion in the quarter, down 33% from the record level in 2025 Q4, when demand for loans under the Family Mortgage programme had been lifted by the expected tightening of its terms. The central bank said this volume was close to 2025 Q1 to Q3 levels, before the market became overheated. Sales continue to be supported by home purchases under instalment plans, with outstanding shared construction agreements, largely unpaid instalments, holding at around RUB 1.5 trillion as of 1 April 2026. The weighted average interest rate on project finance fell below 10% for the first time since January 2025 and remained below the 15.4% corporate segment rate, but the cost of project finance is declining more slowly because cuts in the key rate generally do not affect most loans backed by escrow account funds.
Central Bank of Russia2026-06-02
Central Bank of Russia reports housing construction project finance portfolio up 1% to RUB 10.3 trillion in 2026 Q1
The Central Bank of Russia reported that project finance in housing construction grew 1% in 2026 Q1 to RUB 10.3 trillion, with weak growth driven by developer debt repayment, weather-related delays and cautious project launches amid demand uncertainty. Credits to escrow accounts fell 33% quarter-on-quarter to RUB 1.3 trillion, normalising to 2025 levels, while outstanding shared construction agreements stayed near RUB 1.5 trillion. The weighted average project finance rate dropped below 10%, well under the 15.4% corporate rate, but project finance costs are declining more slowly as key rate cuts have limited impact on loans backed by escrow funds.