Russian mortgage lending will rise by half in 2023, the first deputy CEO of Russia's largest bank Sber, Kirill Tsaryov, told delegates at St Petersburg International Economic Forum (SPIEF) on June 14.

Sber forecasts a 46% rise in disbursements compared to 2022 and extending mortgage loans totalling RUB3.8 trillion ($44.9bn) this year, surpassing the RUB2.6 trillion ($30.7bn) disbursed in the previous year.

Tsaryov highlighted that the average mortgage loan period at Sberbank has seen a notable extension, growing from 18 to 24 years. This trend of an extended average mortgage term has been ongoing since 2019, reflecting changing borrowing patterns and preferences.

VTB Bank, another major player in the Russian banking sector, also projects a record high for mortgage lending in 2023. Anatoly Pechatnikov, Deputy CEO of VTB Bank, stated that the bank has revised its forecast, expecting housing loans to exceed RUB6 trillion ($70.95bn) for the first time in the history of the Russian market. This would mark a significant increase of almost a third compared to the previous year, indicating a robust recovery for the mortgage segment in Russia.

"VTB has revised the forecast of mortgage lending market evolution in 2023. According to a new estimate of the Bank, borrowers will formalise housing loans [up to RUB6 trillion] for the first time in the history of the Russian market. This will be almost a third above the last-year result and within limits of 10% – for record-high sales in 2021. Hence the mortgage segment in Russia will recover completely," the banker said.

Amidst these positive developments in the mortgage lending market, Sber CEO German Gref expressed confidence in the Russian economy's growth prospects. Gref stated in an interview with RBC that the economy will not stagnate and is projected to grow by around 2% in 2023, with a rebound to pre-pandemic levels within the next two years.

Gref emphasised that he does not share the pessimistic view of those predicting economic stagnation, citing the potential for continued growth in the Russian economy. While acknowledging the possibility of global economic challenges and their potential impact on Russia, Gref remains optimistic about the country's economic trajectory, stating that it has the necessary potential for sustained growth.