Long-Term Rental Market in Russia Shows Signs of Slow Recovery Across Major Cities
The long-term rental sector in Russia is slowly regaining momentum as rates edge higher in most large cities over the past month. Market participants have shared mixed yet encouraging signals about this shift, noting a cautious revival after a period of softness.
In 2023, observers highlighted the first positive trend for long-term rentals. Across the 18 largest regional markets, averages edged up modestly in the month. In April, the typical rent for a one-bedroom apartment in these markets stood at around 21.1 thousand rubles, while two-bedroom units averaged roughly 30.8 thousand rubles per month. Analysts at CIAN.Analytics observed month-over-month increases of about 0.4% and 2%, respectively, signaling a tentative rebound in demand that had not been seen in the prior months.
Industry voices note a shift driven by rising demand for rental housing for the first time in the year. Yet supply remains notably higher than demand, with landlords sometimes offering discounts to attract tenants. The broader housing market, including both primary and secondary segments, also appears to be feeling the effects of this revival, suggesting a broader warming of the real estate market rather than a rental-specific spike alone.
Analysts point to several factors behind the observed stabilization. A portion of owners appears to be listing properties for sale, which can temper rental price momentum in the short term. Nevertheless, the seasonal pattern of the market typically shows lower rental demand during the summer holidays, implying that pronounced price swings are unlikely in the coming months as the market moves through its annual cycle.
Data from March indicated a notable decline in the cost of renting a one-room apartment in the capital’s real estate sector, dropping by approximately 11.6%. More recently, the same metric rose to about 43.3 thousand rubles, compared with around 49 thousand rubles a year earlier, illustrating the volatility that characterized the market in the previous year and the evolving trajectory as the year progressed. These figures reflect the ongoing recalibration of prices in response to shifting demand and supply dynamics across Russia’s key cities.
Overall, the rental landscape appears to be transitioning from a period of oversupply toward a more balanced dynamic, with landlords testing the market while tenants increasingly explore longer-term rental options. The coming months will likely reveal whether this modest uptrend sustains itself, or whether seasonal factors and broader economic currents will dampen momentum. In any case, the current data suggests a cautious optimism about the long-term outlook for rental housing in Russia’s major urban centers. [CIAN.Analytics]”}