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projects and lowering administrative requirements, which could reduce construction cycles by 30%.
We also note the potential short-term cooling in the sector due to the modification of the subsidised mortgage programme, which was the core driver for the sector in 2020. The programme rate is to grow 50bp (to 7%), effective from today, and mortgage limits are to be lower, at RUB3mn for all regions (vs. RUB12mn for Moscow and St Petersburg, and RUB6mn for other geographies, at present). Partially offsetting this, the family mortgage programme (with a 6% rate and a limit of RUB12mn for the capitals and RUB6mn for the regions) is to lower its participation parameters: it is now going to require one child born after 2018 (vs. at least two before).
Across the listed universe, we anticipate a reversal in mortgage sales (70% of deals in 1Q21) in the near term, mostly on the lower mortgage limits in Moscow and St Petersburg, as that is unlikely to be offset by the family mortgages.
9.1.5 Retail sector news
117 RUSSIA Country Report July 2021 www.intellinews.com