Crimea has introduced an 8% mortgage amid a decline in home sales
Russian authorities have introduced a preferential mortgage at 8% per year for the purchase of apartments in occupied Crimea and Sevastopol. The program will run from November 1, 2026, to April 30, 2027. It was launched amid a significant drop in sales of new construction on the peninsula.
The maximum loan amount will be 8 million rubles. The buyer must make a down payment of at least 20% of the property’s value. The government will subsidize part of the interest rate so that borrowers can secure a loan at 8% per annum. The term of such a mortgage can be up to 15 years. However, the program applies only to apartments in buildings that are still under construction and have not yet been commissioned.
Russian citizens who have not previously participated in other federal mortgage programs will be eligible for this benefit. In other words, the new offer is not intended for those who have already received similar government support.
Russian Deputy Prime Minister Marat Khusnullin attributed the launch of the program to the economic difficulties facing Crimea and Sevastopol. According to him, construction has become one of the main drivers of the peninsula’s economic development. However, the local market continues to face challenges due to the security situation, as well as constraints in the energy and logistics sectors. Khusnullin stated that the new program is intended to support demand for real estate and help developers complete projects already underway. In fact, Russian authorities hope to attract more buyers through cheaper loans.
Sales of new homes on the peninsula are declining
The decision on preferential mortgages was made against the backdrop of a deteriorating real estate market. According to data from the analytical firm bnMAP.pro, during the first nine months of 2026, the number of transactions involving new-construction properties in Crimea fell by 34.2% compared to the same period last year. In total, buyers concluded about 4,800 transactions. At the same time, the average price per square meter also fell. Over this period, it dropped by 8.5%—to 245,000 rubles.
By comparison, across Russia as a whole, the number of transactions involving new-construction properties rose by 2% over the nine-month period. However, in cities with populations exceeding one million, the situation was different: sales there fell by 8.1%. Thus, the decline in the Crimean market is significantly steeper than the all-Russian figures. It is against this backdrop that the authorities decided to provide additional support to buyers and developers through preferential loans.
The peninsula also experienced power outages
In early November, Crimea and Sevastopol faced widespread power outages. The Russian Ministry of Energy attributed the outages to strikes by Ukrainian forces on infrastructure on the night of November 4. At the same time, the company “Krymenergo” reported accidents on the main power grids outside the peninsula. According to the company, this led to an electricity shortage in the region.
In Sevastopol on November 5, electricity was supplied on a rotating schedule: two hours with power and six hours without. Thus, the launch of the subsidized mortgage program coincided with several challenges on the peninsula: a decline in real estate sales, logistical constraints, and power outages. Russian authorities expect that cheaper loans will help support the construction market and stimulate home purchases. The Russian Ministry of Finance’s press service announced the new program.
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