Mass Bankruptcies of Developers Are Expected in russia

About 20% of developers in russia are on the verge of bankruptcy due to falling sales and high interest rates, and soon their share may exceed 30 %. The most vulnerable are companies in the mass housing segment that depend on mortgage demand. More than 19 % of developers are officially postponing the completion dates of their projects, and delays of more than six months put them in the “problematic” category.

The industry is suffering from low demand, limited state support, and the outflow of resources to the war against Ukraine. As a result, sales are declining, debt burdens are growing, and construction is being frozen. Investment in real estate decreased by 44 % in the first half of 2025. Banks are rigorously screening customers: in June, they rejected 50.6 % of mortgage applications. Even borrowers with impeccable credit histories find apartments virtually unattainable—the real cost of a mortgage, including insurance and commissions, reaches a minimum of 25 % per annum.

Such interest rates put pressure not only on households but also on businesses. In the corporate segment, the share of non-performing loans rose to 10.4 % in the second quarter, or to $111.9 billion, having added  $8.6 billion over three months. The most significant deterioration was recorded in the real estate sector.

Authorities of the rf have already begun to consider the possibility of introducing a moratorium on bankruptcies of developers, external restructuring, and creation of temporary state funds to complete problematic projects.