Deputy director of the apartment rental department of INCOM-Real Estate Oksana Polyakova told socialbites.ca that the demand for rental housing in the mass segment in Moscow has increased since August 2024 and will continue to grow until the end of October. According to her, this corresponds to seasonality, but the situation this year can be called extraordinary:
“The high interest from tenants continued throughout the year, even during traditionally calm periods. That is, seasonal growth occurred due to already high demand indicators. There was a serious supply shortage in the capital market; the number of rental requests is nine times higher than the number of displayed apartments. Therefore, the situation of a shortage of apartments will continue to be tense even after the end of the active season and cooling of demand,” he said.
According to him, renting a studio in Moscow in the mass market will now cost an average of one dollar 45-55 thousand rubles monthly, one-room apartment – 50-65 thousand rublestwo-room – inside 65-85 thousand rublesthree rooms 75–120 thousand rubles.
The head of the Yandex Rental service, Roman Zhukov, has different, higher figures. According to his data, as of the first ten days of September, the average rental price for studios in Moscow was 75.5 thousand rubles (+4.5% compared to the final figures for August), “one-room apartments” – 79.9 thousand rubles (+11.4%), “two-room apartments” – 111.5 thousand rubles (+7.5%), “three-room apartments” – 169.6 thousand rubles (+6%).
Experts agree that, given the extreme shortage of rental housing in Moscow, rental rates will not fall, and prices on the Moscow rental housing market may rise by another 5-10% before the end of the period of high business activity.
Prices are rising across Russia
Prices are also rising across Russia. According to Zhukov, as of the first ten days of September, studios are rented for an average of 27.6 thousand rubles. This is 2.8% more than in August. The average cost of renting a one-room apartment is 26.1 thousand rubles (+4.6% compared to August), two-room apartments – 34.7 thousand rubles (+5%), three-room apartments – 45.5 thousand rubles (+3.8%).
Economist, Candidate of Economic Sciences, Associate Professor of the Department of Economics of the Institute of Economics and Economics Sergei Suetin told socialbites.ca: Renting an apartment in Russia as a whole is now 40% more expensive than in January 2024. The economist described rental prices as record-breaking, explaining that rental prices for one-room apartments have increased 200-fold in the past three months. 28%.
“Now is the last chance to rent a house before the next price increase. The autumn period is traditionally accompanied by an increase in demand and prices, and by the end of October rental rates could increase by 5-10%.
Due to supply shortages and high mortgage rates, prices are expected to rise by at least 3-5% in the fall. If supply does not increase, an increase of up to 8-10% is possible by the end of the year. Therefore, it seems logical for those planning to rent a home to do so in the coming weeks, before another price increase occurs. The economist believes that renting more affordable and high-quality apartments, especially in satellite cities, will continue to be in demand.
How much longer will prices continue to rise?
In a conversation with socialbites.ca, Associate Professor of the Financial University under the Government of the Russian Federation Pyotr Shcherbachenko admitted that rental rates in Moscow and the country as a whole could increase by 100 percent. 15-20% due to seasonal factors and the high interest rate of the Central Bank (currently 19%). According to him, the most expensive to rent will be one-room and two-room apartments – they are the largest demand in the capital and in the Russian Federation as a whole. Prices for one- and two-room options may increase 10-15% depending on the region.
Alina Dzhus/socialbites.ca
Polyakova from INCOM-Real Estate explained that prices for one-room and two-room apartments, as the most in-demand housing, are increasing faster.
“Tenants in the mass segment traditionally have the highest demand for one-room apartments and mini-studios as the most budget-friendly options for renting separate housing – 42% of tenants are focused on them, 30% of the demand is for two-room apartments, 18% for three-room apartments and four-room apartments,” Polyakova explained.
Candidate of Economic Sciences, Professor of the Advertising Department at Synergy University Sergei Zainullin expects an increase in prices by the end of the year.
“There will be another increase in rental prices towards the beginning of the year“Typically, many people postpone making decisions until important dates, such as the end of the year. It can also be noted that the population reacts to economic events with a delay of several months. In fact, we expect this reaction only by the end of the year,” he predicted.
When is the best time to rent an apartment?
Mortgage broker Dmitry Rakuta reminded socialbites.ca that in order to save on rent, it is best to rent an apartment in the summer. If you need housing in the near future, it is better to wait until January.
“I would settle the issue of rent in January, because then there will be a lull in the real estate market, including rental housing. A discount can be negotiated with the owner. For example, you can try to agree that you will rent for a long time (11 months). And so you can knock off 5-10 thousand rubles from the rental price: you will be a long-term tenant, and your plans are not for a quick move, so this can also attract the landlord,” Rakuta advised.
The movie is not available for purchase
Despite rising rental rates Renting an apartment is now more profitable than buying. Elena Sannikova, mortgage lending specialist at INCOM-Real Estate, made calculations for socialbites.ca of average mortgage payments in the secondary market. According to her estimates, if you calculate an average mortgage of 21% for 30 years and the client has a down payment of 20% of the apartment price, the following payments are obtained:
• Studio: average cost – 7.5 million rubles, loan – 6 million rubles, monthly payment – 107 thousand rubles;
• One-room apartment: average cost – 12.5 million rubles, loan – 10 million rubles, payment – 178 thousand rubles;
• Two-room apartment: average cost – 17.5 million rubles, loan – 14 million rubles, payment – 250 thousand rubles;
• Three-room apartment: average cost 25 million rubles, loan 20 million rubles, payment 356 thousand rubles.
How to save on rent
Polyakova explained that in order to save money, some tenants prefer to rent a house together, this way everyone can reduce their financial burden, especially if they find an apartment in a remote area of the city.
“The infrastructure, including transport, is well developed almost everywhere in Moscow today. You can find more economical options in New Moscow or the Moscow region, but if you have to regularly travel to your place of work/study by various means of transport, you need to take into account the cost of money and time during travel. In an old housing stock, you can find an unfurnished apartment on the lower or upper floors – such deficiencies can reduce the cost by 5-10% compared to similar furnished properties on the middle floors or in a modern house,” Polyakova advised.
He added that you can rent an apartment in the case of “renovation”: if you are ready to do such work, then the rent for the period of their completion will be reduced by 10-15-30% or accommodation can be made free – depending on the degree of wear and tear of the premises and labor costs.
The cheapest options in old Moscow (except Zelenograd) – rooms – will cost from 14 to 30 thousand rubles, Polyakova added:
“But even in difficult economic conditions, such an option as a room is not suitable for everyone: they are now often rented in apartments where the owners live – such a neighborhood can be extremely burdensome, as landlords are often picky about everyday matters. Quarrels and misunderstandings almost always occur.
Zhukov advised considering places further from the center – for example, it could be New Moscow in the capital.
“If the distance is still one of the most important parameters, then you can study the offers in the old housing stock. Apartments in the “Stalin”, “Khrushchev” and “Brezhnev” buildings are often not inferior to modern projects in terms of comfort and environmental friendliness, but they are often rented cheaper than plots in “yesterday’s new buildings”. But many of them provide for repairs, furniture and household appliances. They are also located in already established places, that is, in residential areas with good transport accessibility, social and commercial infrastructure,” Zhukov explained.
What are you thinking?
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.