Rental Prices Expected to Drop By 3% in February, According to Real Estate Experts
Increase in Rental Listings and Decrease in Rents in Moscow
A recent study reveals a rise in the number of closed real estate deals in Moscow, with 63,000 transactions marking a 22% increase from January. Despite this growth, the figure remains below the number of new rental listings, which decreased by 1% in February, totaling 66,000 listings. This discrepancy has led to a 2-3% reduction in rental housing costs compared to the preceding month.
The average monthly rent for dwellings in Moscow stands at 95,000 rubles, contrasting with St. Petersburg's 49,000 rubles and up to 36,000 rubles in the millionaire cities. Rentals in large cities are capped at 32,000 rubles. As of February's end, the active rental listings reached 100,000, the highest in the past two years.
With selling properties becoming more challenging due to current circumstances, experts forecast an ongoing trend of increasing rental listings and a probable decrease in property prices.
According to a report by "Intermark Rent," the average rent of an apartment in the top 100 most expensive listings in Moscow increased by 15% in 2024, reaching 1.66 million rubles per month. The cost of renting the most expensive apartment in the capital jumped by 225% to 6.5 million rubles per month.
Russia's reliance on the rental sector is estimated to be around 13-15% of households, according to the Federal State Statistics Service, signifying a dependence on rental housing. However, specific trends for Moscow, like the increases in listings and decreases in rent prices, remain unspecified in the data.
A dynamic housing market characterized a broader Russian market in 2023. Russia witnessed a 6.81% nominal increase in house prices, translating to a real increase of 14.74% after inflation adjustment. Despite these trends, their impact on the rental market remains to be seen.
Understanding broader trends in the Russian housing market provides context for potential developments in the rental sector, albeit without specific data on rental listings and rent prices in Moscow for 2023 and projections for 2024. To gain detailed insights into Moscow's rental market, it is advisable to seek local real estate reports or market analyses targeted specifically at Moscow.
Investors may find other opportunities in the midst of the decline in property prices, such as investing in real-estate property in Moscow. The decrease in rental housing costs could also entice more individuals to seek financing for rental properties in the city.
