Rental prices for apartments in Russia are projected to ease by about 5 to 10 percent during June and July 2024, according to insights shared with socialbites.ca by mortgage broker Dmitry Rakuta. The forecast suggests a temporary softening in the market, driven by seasonal dynamics and the interplay between supply and demand as buyers and renters navigate shifting mortgage rates and financing conditions.
He recommends proactive planning: discussing terms with landlords ahead of time, and even negotiating the rental price where possible. The broker emphasizes lining up options in advance if a move is contemplated, while also urging renters to consider locking in a lease before August, a period that often brings tighter availability and a higher likelihood of more favorable terms. Rakuta notes that June and July tend to be the months where selective bargaining power peaks, but the overall level of demand should remain healthy as long as mortgage rates stay elevated near the current range.
Rakuta explains that the strength of rental demand is closely tied to mortgage costs. With annually renewed rates hovering around 17 to 18 percent, prospective renters continue to seek rental housing as an alternative to home ownership in the near term. This dynamic helps sustain activity in the rental market, even as prices show signs of cooling. Market participants are watching how lending conditions influence both the availability of rental stock and the willingness of landlords to negotiate on price.
Data from Avito Real Estate indicates that the average long-term rental price across Russia for the period from May 1 to May 15, 2024 stood at 30,000 rubles per month. When compared to the same interval in the previous year, there was a 20 percent rise, equivalent to about 5,000 rubles. This uptick reflects continued demand for larger or better-located units, and the broader inflationary pressure affecting housing costs. Property owners and managers have in many markets adjusted expectations accordingly, balancing occupancy targets with the need to attract reliable tenants in a competitive environment.
Projections for the summer indicate a potential dip in average rents to roughly 27,000 to 28,500 rubles per month, as seasonal factors and the availability of stock create pockets of pricing flexibility. For renters, this may translate into opportunities to secure longer leases or more favorable terms if they act during the mid-summer window. Real estate professionals caution that the exact trajectory will vary by city, neighborhood, and the velocity of new listings. In metropolitan centers, where demand remains sturdy, competition among renters can still support price resilience, even as some markets show modest price relief. Market watchers continue to monitor leasing activity, inventory levels, and financing conditions to gauge how long the current cycle of relative affordability might persist.
Historical context shows that Moscow’s riverfront development and surrounding districts have seen ongoing intensification of residential projects. This trend influences rental dynamics by expanding the supply of new units and altering the mix of housing options available to renters. Buyers and renters alike should remain attentive to how infrastructure development, zoning decisions, and new construction timelines intersect with seasonal demand shifts. The net effect is a rental market that remains active and price-sensitive, with renters benefiting from greater latitude to negotiate when listings are plentiful and competition is high.