Housing construction in Russia was predicted to decline Russian news EN

Severstal Distribution predicted a decline in housing construction in Russia by 20-25 percent

By the end of the second or third quarter of 2022, the pace of housing construction in Russia may fall by 20-25 percent compared to similar periods in previous years. Such a fate for the real estate market was predicted in Severstal Distribution, writes RIA News.

According to the company’s sales director Vladislav Palitsin, such dynamics will affect many areas of small business. “Of course, this affects our customers, a large pool of customers who produce metal doors, those who produce metal radiators. Therefore, the trends of these niches are not at all rosy,” the expert noted.

The specialist clarified that his forecast is based on a comparison of construction rates and mortgage conditions. However, Palitsin does not rule out that the trend may change. The expert also recalled that Severstal is primarily focused on domestic demand – in recent years it has been working on the development of the Russian market. Palitsin is convinced that this will allow the company to quickly adapt to new conditions.

Former experts predictedthat lowering the mortgage rate to seven percent per annum will stimulate housing construction in Russia. According to experts, a lower interest rate on loans will help avoid interruption of construction cycles.

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