Russia's 2% mortgage scheme fuels housing boom in Far East and Arctic
A government-backed mortgage scheme has transformed housing in Russia’s Far East and Arctic regions. The Far Eastern and Arctic Mortgage (FEAM) offers loans at just 2% annual interest, making home ownership far more accessible. Since its launch, the programme has driven a sharp rise in construction and infrastructure growth. FEAM was designed to attract and keep residents in remote areas while boosting local economies. By 2025, borrowers had secured over 190 billion rubles in loans through the scheme. Each year for the past three years, approvals have never dropped below 30,000.
The impact on housing has been dramatic. In the Far Eastern Federal District, completed homes more than doubled—from 2.5 million square metres in 2019 to 4.7 million in 2025. Overall construction volumes in the region have tripled since the programme began. New-build apartments remain the top choice, with nearly half of all FEAM borrowers opting for them.
In the Arctic Zone, the effects were equally striking. New housing starts surged by 40% in 2024, the first full year of the programme’s operation.
Yet challenges remain. Funding for new developments is still limited, and much of the existing secondary housing stock is outdated. FEAM has already reshaped housing markets in Russia’s eastern and Arctic regions. With sustained demand and rising construction, the programme continues to play a key role in regional development. However, long-term success will depend on addressing funding gaps and modernising older properties.
