The year saw a sharp rise in rents for one-room apartments, with yearly increases averaging 25% and prices climbing to about 25 thousand rubles per month. Studios followed closely with a 19% yearly rise, also reaching around 25 thousand rubles. In contrast, two-room apartments rose by 6.7% to roughly 32 thousand rubles, while three-room units held steady at about 45 thousand rubles. These figures come from Konstantin Kamenev, who heads the long-term rental category at Avito Real Estate.
Tsian.Analytics corroborated these trends through insights shared by Elena Lapshina. Their data indicates that in February 2024, the cost of renting a one-room apartment nationwide would be about 30% higher than the previous year.
Lapshina noted that unlike the previous year, when seasonal patterns typically saw rents ease after a period of rapid growth before the holidays, many cities this year did not experience a decline. Instead, rents either stagnated or rose gradually in several markets.
Why did rents rise?
Kamenev highlighted three key drivers of the price shift:
- At the start of 2024, demand for rental housing fell, but the decline was smaller than the drop in supply, reshaping the market dynamics.
- Rising mortgage rates pushed some buyers toward long-term rentals as a more affordable option in the short term.
- Inflation pushed up real estate costs annually, with annual inflation around seven percent reported by Rosstat.
Kamenev added that high mortgage rates, particularly in the secondary market without favorable loan programs, pushed many potential buyers toward renting. This shift gradually reduced competition and left pricier options as the more common choice.
He observed that early 2024 brought a situation where rents began trending upward while smaller, more compact apartments became increasingly in demand, contributing to overall price gains.
Among cities with populations over one million, Chelyabinsk saw the largest annual rent surge at about 51.5%, followed by Moscow at 48.7% and Perm at 44.4%. In contrast, Rostov-on-Don and Voronezh showed comparatively modest gains of around 13% and 17.6% respectively.
What lies ahead for rental prices?
Lapshina predicted that those unable to buy under the new conditions would continue entering the rental market, implying rents would not decline soon.
She pointed to Moscow as a sign of the trend, where a rebound in rental rates followed a drop in preferential mortgage limits. The limit in Moscow decreased significantly, impacting affordability and spurring renewed rental demand.
Oksana Polyakova, deputy director of the apartment rental department at INCOM Real Estate, noted that average rents rose most in Moscow’s Central Administrative District, reaching around 69.5 thousand rubles, with notable increases in the South-Western and Eastern Administrative Districts as well. She explained that the market saw the cheapest options disappear, pulling the overall average higher. The depletion in affordable options also reduced the total supply in 2023, and though supply has started to recover, it remains uncertain whether complete normalization has occurred yet, as budget options are typically rented quickly.
Olga Pavlinova, director of the rental department at Etazhi, commented that a mismatch persists between tenant expectations and actual rents. She anticipated that rent growth would slow and stabilize through spring, with a new wave of price increases likely in the latter half of summer.
Mortgage broker Dmitry Rakuta forecasted continued rent growth until there are substantial rate changes and a reduction in secondary housing mortgage rates. He stressed that seasonal factors would still push rents higher in the autumn and winter months.
Strategies for saving on rent
Pavlinova advised renters to make decisions based on real needs, focusing on areas with solid transport access that may be less popular. Negotiations before signing long-term leases are crucial, and attention to how utilities are billed and metered can result in meaningful savings.
Rakuta recommended landlords offer flexible deposit terms, such as spreading the security deposit over several months and ensuring a guaranteed payment across the lease. Longer lease terms, he noted, often lead to lower monthly payments as landlords seek stability.
Lapshina suggested exploring more affordable city areas and considering renting a room if budgets are tight. She added that traditional cheaper options can be found in outlying districts where travel to central zones may still be practical. Polyakova observed that many tenants were seeking one-room and two-room economy-class apartments, but deals at old price levels disappeared, prompting more households to share housing. In 2024, rents were higher than at the start of 2023.
For savings, Polyakova suggested choosing lower-quality units that may require some repairs, which could reduce rent by a significant margin depending on the extent of issues. She also mentioned there are options to rent housing that requires renovations, where rent reductions or waivers can apply during the work period.