The price tag on Moscow’s luxury apartment rentals reached a peak in July, with the average rate standing at 2.98 thousand rubles per square meter per month. This observation aligns with the analysis titled “To hit the primer” and relies on data from Intermark Rent. The figure marks a new high in the ongoing market cycle and underscores how premium rents have moved in step with demand in the capital city.
Analysts note that luxury housing prices climbed by about 39% over the past year. Industry experts attribute this surge to rising demand paired with a notable shortage of supply in the high-end segment, creating a situation where premium units command stronger prices as competition for scarce properties intensifies.
The weighted average budget for securing a luxury apartment also reached record levels, estimated at approximately ₽465 thousand per month per property. This benchmark reflects roughly a 20% rise from the start of the year, signaling that the luxury market is behaving very differently from broader rental trends and is driven by factors specific to high-end segments.
Across the market, experts highlight a 16% drop in available luxury apartment listings from January through July 2024. Analysts connect the tighter supply with the rapid uptick in rental values, explaining that fewer units on the market naturally push rents higher as buyers compete for a smaller pool of properties.
Industry commentary from the rental sector describes Moscow’s luxury market as experiencing an unprecedented rise in prices due to overheated demand and a severe shortage of supply. This dynamic is shaping the expectations of landlords and tenants alike, and it continues to influence negotiations and lease terms in the capital’s most exclusive neighborhoods.
Earlier commentary from economist Artem Golubev noted that rental housing prices in Russia have been rising partly because of a shrinking pool of available workers, escalating migration, and tighter mortgage lending. He suggested that the high cost of ownership, combined with the elimination of preferential mortgage programs, has driven many households toward renting as a primary housing solution, thereby boosting demand in the rental market.
For Russians, the question of whether to buy an apartment in a new building has shifted in importance. With affordability constraints and policy changes influencing mortgage access, renting emerges as a viable alternative in the current climate, aligning with broader trends toward flexible housing arrangements in major urban centers.