The Moscow rental market is undergoing a visible shift in how real estate agents price their services for long term flats. After a period of weaker demand, commissions have contracted substantially, dropping from the historic norm to a range that is roughly half to two thirds of a single month’s rent. Market watchers note that this adjustment is mainly a Moscow phenomenon at this stage, reflecting the unique dynamics of the local rental ecosystem and its sensitivity to demand cycles.
Industry leaders report that commissions for long term rental services now commonly land between 50 and 70 percent of one month’s rent, a sharp departure from the previous standard which was effectively double the monthly rent. Olga Pavlinova, who heads the residential and commercial rental division at Etazhi, explains that this downward movement has been driven by a combination of softer demand and intensified competition among agents. The price pressure is strongest in central Moscow and gradually extends to other major urban centers, signaling a broader trend in major metropolitan markets facing similar pressures.
Across the market, participants observe that commissions have stabilized around the 50 to 60 percent mark, with some variance depending on the service package, the level of property exposure, and the seller’s willingness to negotiate. The competitive environment has become more intense as agencies vie for listings and buyers alike. Yet even with this wider competition, the trend does not appear uniform across all segments. Higher priced properties sometimes retain more traditional pricing, underscoring a split in market behavior between mid and high end rentals.
Analysts point to a rise in landlord listings as owners seek more flexible terms to attract tenants without intermediaries. The shift characterizes a market adjusting to slower macroeconomic signals and caution among households considering long term commitments. In the current climate, many renters planning to relocate or seek temporary accommodation prefer to negotiate directly with landlords, bypassing intermediary services when possible. However, the premium for premium residences remains comparatively steadier, reflecting continued demand for upscale properties where agents still provide value in screening tenants and handling complex lease agreements.
Experts warn that the reduced demand for rental housing in Moscow is part of a broader cycle shaped by geopolitical tensions and global economic uncertainty, with the spring season often seen as a potential turning point. Industry observers emphasize that the timing of this recovery is uncertain and contingent on improving economic confidence, easing travel restrictions, and stabilizing labor markets. Until conditions improve, the market is likely to experience ongoing fluctuations in rental demand and agent pricing structures, with landlords and tenants navigating a more nuanced landscape than in previous years. Overall, the market remains cautious, and the role of real estate professionals continues to adapt to a clearer, more value-driven approach that prioritizes reliable tenant screening, transparent terms, and efficient lease administration. Sources note that this state of play is likely to persist through the near term as external factors continue to exert influence on hiring, migration, and housing affordability.