Urban exodus: More and more Russians are moving to the countryside

Not a mass phenomenon, but a growing trend: more and more Russians are rejecting the hustle and bustle of the big city and moving to rural areas. The younger generation in particular is taking a liking to this way of life - and is discovering the traditional wooden house of their grandparents. According to market participants, the granting of mortgages for the construction of single-family homes and the purchase of country houses has increased in Russia. In the first three months of the year, Sberbank, Russia's largest financial institution, recorded a volume of more than 80 billion roubles, the equivalent of 906.3 million euros, in mortgages for single-family homes ready for occupancy - an increase of 78% compared to the same period last year. Lending for home loans amounted to 47.7 billion roubles (540.4 million euros) - a 2.5-fold increase compared to the same period last year. Country houses accounted for 10% of total mortgage lending in the second half of 2025, while owner-occupier loans accounted for 5%. According to Domclick, a real estate portal of Sberbank, the average loan amount for home construction is 6.3 million rubles and for the purchase of a country house 3.8 million rubles, 71,375 and 43,052 euros respectively. According to market experts, the reduction in mortgage interest rates in light of the easing of the key interest rate in Russia is attracting more potential buyers. The key interest rate has been gradually reduced from 21% to the current 14.5% since summer 2025. Another reason is the favorable time of year, as many people usually start building their own home in spring. At the same time, prices for home construction have risen dramatically year-on-year. At the beginning of 2026, a square meter cost 80,000 rubles (906 euros), an increase of around 15% compared to the beginning of 2025. Ready-to-occupy country houses have also increased in price by 10.7% to around 50,000 rubles, 566 euros. According to the Russian real estate platform Cian, the average price for a house of your own is 16.5 million roubles, the equivalent of 186,900 euros. More mortgages, fewer transactions The largest increase in demand was recorded by the state mortgage bank Dom.RF for conventional mortgage loans without state subsidies - an increase of 132% compared to February. According to Igor Rudenko, Head of Mortgage Loans at Dom.RF, there was also an increase in demand in the home construction segment. The increase in approved construction loans in March was 34% compared to the previous month. In addition, demand for single-family homes increased by 73% in March. The number of applications for loans with state support, such as family mortgages, grew by 28% in the same month. In contrast, the Russian real estate platform Cian observed significantly fewer transactions in the country house segment in the first quarter than a year ago. In the first three months of 2026, around 60,000 houses found a buyer, which corresponds to a slump of 33%. Cian chief analyst Alexei Popov explains: "The market for country houses is under pressure. Property loans without concessions remain expensive, the new rules for family mortgages are reducing the number of potential buyers and the snowy winter in many regions is not helping the market either." The rules for family mortgages have recently been tightened. Since February, a house may only be financed with a single loan (6 to 12 million roubles, 68,000 and 136,000 euros). Taking out a second loan, as was previously customary, is prohibited. Gen Z dreams of a country house Life in the country and in small towns appeals to younger generations in particular. A survey conducted by the Russian internet company Yandex revealed that 67% of Generation Z respondents (born between 1997 and 2012) dream of owning a country house. A third of them even stated that they wanted to realize this dream in the next two to three years. Millennials (1980 to 1996) are somewhat more reserved at 56%, while 50% of Generation X (1965 to 1979) would like a home away from the hustle and bustle of the big city. According to the Russian statistics authority Rosstat, 18% more Russians between the ages of 25 and 34 moved to a village between 2023 and 2024 than was the case before the Covid pandemic. Social researchers see several reasons for this development. In view of the high stress levels and environmental pollution in cities, young Russians born into the digital age with its sensory overload want a quieter everyday life. The urban exodus mainly affects the outskirts of larger cities. The question of cost also plays a role for many Russians. According to market experts, it is much more comfortable to live in the countryside on a Moscow salary. Above all, IT specialists, designers and marketing specialists working remotely are following the call of the village idyll. Experts do not consider this trend to be a mass phenomenon, but the niche segment could grow rapidly over the next few years in view of further interest rate cuts. Grandpa's cottage back in An interesting phenomenon on the Russian real estate market is the so-called Isbing, derived from the Russian word "Isba", which translates into German as "hut". Russians are buying traditional log cabins in rural areas for their own use or renting them out to young tourists. According to the business newspaper Kommersant, the price range for accommodation in an "Isba" or a larger log cabin is between 7000 and 150,000 roubles per night, 80 to 1700 euros. The demand for wooden houses with history is now leading to a doubling of their selling price. Two years ago, a dilapidated wooden house cost 500,000 to 700,000 roubles (5600 to 8000 euros) - today the price starts from as little as 1.5 million roubles and can reach 4.5 million (17,000 and 51,000 euros), say industry representatives. Urban exodus in Germany The urban exodus is more pronounced in Germany than in Russia. According to a study by the Federal Institute for Population Research (BiB), Germans have been increasingly moving to rural areas since 2014. Families in particular are turning their backs on the big city. According to Handelsblatt, a total of 56,600 people moved from the seven largest German cities to directly neighboring districts or independent cities in 2021. The highest numbers of people moving away were recorded in Berlin (17,249), Hamburg (11,145), Cologne (7894) and Frankfurt (6653). The Federal Institute for Population Research explains this trend with the housing shortage in the metropolitan areas and the high housing prices in urban areas.  This article first appeared in the exclusive newsletter of the German-Russian Chamber of Commerce Abroad The post Urban exodus: More and more Russians are moving to the countryside appeared first on ostwirtschaft.de.