Cash dominates Russia's 2025 housing market as mortgages decline by 11%
Russia's housing market witnessed significant changes in 2025, with cash transactions reaching an all-time high. Nearly 2 million deals were finalized without mortgages, encompassing apartments, parking spaces, and commercial properties. This trend emerged as mortgage lending decreased by 11% compared to the previous year.
Cash purchases dominated the market, accounting for 68% of all residential sales—a 2 percentage point increase from 2024. By December, the daily average reached 9,500 cash deals. Apartments constituted a larger share of these purchases, rising from 47% to 59% in the primary market.
Prices varied across segments. On the secondary market, the average cash purchase price remained steady at 6 million rubles ($65,000). However, in the primary market, it increased by 37% to 6.1 million rubles ($66,000).
The mortgage slowdown reversed sharply in early 2026. January saw banks issue a record 87,000 loans worth 426 billion rubles ($4.6 billion). Analysts now anticipate the cash deal share to decrease to 59% this year as mortgage activity rebounds.
The surge in cash purchases coincided with high mortgage rates of 15.5%, designed to curb 6% inflation. Economic growth remained sluggish at 0.6%, while sanctions continued to limit financial access. These conditions characterized a year where cash ruled Russia's property market.
