Reduction of the key rate to 17%: new opportunities for the housing market

The central bank launched the long-awaited easing of monetary policy by lowering the key interest rate from 18% to 17%. This step by the regulator indicates that the period of record high inflation is behind us. For everyone involved in the real estate industry, from ordinary buyers to large investors, this event is extremely significant. Let's look at how this decision will affect market conditions in the near future. 1. Mortgage lending: the first step towards cheaper loans For those who dream of owning their own apartment, this is the key news. The key rate serves as the basis for the formation of interest on all loans in the country. Its decrease leads to a gradual reduction in the cost of resources for financial institutions. This will invariably be followed by a reduction in mortgage rates. What to expect in practice: You should not expect an instant and sharp drop in interest. This process will be progressive. However, the trend has definitely turned around: the era of maximum high mortgage rates is coming to an end. Those who are planning a purchase should already actively study the offers of banks and be ready to make a deal on favorable terms. 2. Investment climate: growing competitiveness of real estate Reduction of interest on deposits: Following the key interest rate, interest on bank deposits will begin to decrease. The high profitability that has become common in recent years will gradually decrease. Implications for the investor: Real estate is once again consolidating its position as a competitive asset class. Its rental yield is starting to look significantly more attractive against the background of falling profitability of deposits. An additional incentive is the revival of demand due to mortgages, which may lead to stabilization and even an increase in the cost of square meters in the future.

3. Market dynamics: projected surge of interest Influence on the psychology of the participants: The decision of the Central Bank is a powerful signal that inspires confidence. Buyers who took a wait-and-see attitude in anticipation of the maximum rates will begin to show activity. The conviction that the crisis period has been passed will stimulate an increase in demand. What is important for sellers to consider: An increase in customer activity is a positive signal for sellers. Increasing the pool of interested customers can have a positive effect on the pace of transactions.

Practical recommendations for different groups: For buyers: The current moment is the optimal time to analyze market offers and obtain prior mortgage approval. The rates have entered the reduction phase, so it is possible to consolidate the terms at a favorable price. Sellers: The market is entering a recovery phase. The influx of new buyers is a good reason to reconsider your price expectations and step up the preparation of the property for sale. Investors: Falling yields on traditional savings instruments (bank deposits) increase the attractiveness of rental businesses and investments in residential real estate. Stay informed about the main market trends with us!

Your expert on new buildings, Vesta Saliy https://maralin.ru/team/Saliy