Overview of the rental housing market in Moscow

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The rental market in the capital is constantly on the move. The cost of renting an apartment depends on a number of factors. First of all, the cost of apartments depends on the level of demand, supply and season..

At the moment in the rental market in Moscow, prices are dictated by homeowners: in January 2011, the demand for apartments in the capital increased significantly, which, against the backdrop of a decrease in supply, naturally led to an increase in rental prices.

Demand for rental housing in Moscow increased by a third

As analysts of the MIEL-Arenda real estate agency note, the demand for rental apartments in Moscow compared to December in January 2011 increased by 28%. At the same time, the supply in the same period decreased by 13%, and in the price segment up to $ 1,000 fell by as much as 20%.

The maximum demand in January 2011 was observed for apartments in the middle price segment from 1,000 to 3 thousand dollars and from 750 to 1,000 dollars (the share of total demand was 39% and 36%, respectively), for the cheapest housing, the cost of which is up to $ 750, accounted for 23% of the total market share. The minimum demand during this period was for elite housing, which could be rented at a price of 6 thousand dollars..

Overview of the rental housing market in Moscow

As for the supply of apartments in the capital, in January the maximum supply (47%) was observed in the price range from 1,000 to 3 thousand dollars, followed by the cheapest apartments to 750 dollars (26%) and from 750 to 1,000 dollars (23 %). Elite housing accounted for only 0.6% of the total supply.

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At the same time, the highest demand in the period under review was used by one-room apartments, followed by two-room apartments, the minimum demand, according to analysts, was observed for three-room and multi-room apartments.

Homeowners Raise Apartment Rentals

Against the backdrop of a noticeably increased demand for rental apartments in Moscow in January 2011, rental prices also showed an upward trend.

The beginning of the year on the capital’s rental market is characterized by a solid increase in the cost of apartments. According to GdeEtotDom.RU analysts, the main reason is that on the eve of the holidays the owners of inexpensive housing left the market. Thus, the cost of renting one-room apartments in the cheapest economy segment increased by an average of 1 thousand rubles, in January the rent of such housing reached a price of 27 thousand rubles. Two-room apartments of the same price category could be rented for an average of 34 thousand rubles, and a three-room apartment would cost 45 thousand rubles.

Overview of the rental housing market in Moscow

In business class, the rental price did not increase so significantly, the rise in price was from 1 to 2%. So the maximum price increase was observed for three-room apartments – 2.1%.

According to the experts of the MIEL-Arenda agency, by the beginning of February 2011 rental rates in ruble terms for 1-room apartments were in the range of 20–94 thousand rubles, for 2-room apartments – 25–275 thousand rubles, for 3- room – 35 – 460 thousand rubles, for 4-room – 45 – 700 thousand rubles.

According to experts of the portal “GdeEtotDom.RU”, the average rental price in Moscow for 1-room economy class apartments in January 2011 was 27 thousand rubles, 2-room apartments – 34 thousand rubles, 3-room apartments – 45 thousand rubles. A one-room business class apartment could be rented for 40 thousand rubles, a two-room apartment for 58.5 thousand rubles (+ 10%), a three-room apartment for 80 thousand rubles (+ 9%). For an elite one-room apartment you would have to pay 65 thousand rubles, for a two-room apartment – 110 thousand rubles, for a three-room apartment – 160.5 thousand rubles.

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According to the Moscow real estate agency DOKI, due to the rise in the cost of renting an apartment, Muscovites increasingly began to rent housing in groups. Today, potential tenants of apartments began to think about the possibility of renting a large apartment in the center in a club, instead of renting a cheap one-room apartment in a residential area. People began to understand that it is more profitable to rent a good apartment in the center for 15-20 thousand rubles per person than to rent a cheap one-room apartment in a residential area for 25 thousand.

According to representatives of the agency, in the summer of 2010, the main trend in the rental market in Moscow was the refusal of about 30% of young Muscovites to rent an apartment and return to their parental home. In the new year, the tendency has noticeably changed: flat-sharing is gaining more and more popularity in the rental market – a type of joint rental housing. This method of renting is very common among young people in Europe, as a measure to reduce rental costs..

Overview of the rental housing market in Moscow

Today, Russian young people who are trying to start an independent life without their parents, as well as those who have come to conquer the capital, often spend half of their income on renting an apartment. Consequently, according to the specialists of the DOKI real estate agency, the development of joint leases will continue.

In general, the rental market in Moscow in the new year will still gain momentum. After all, the peculiarity of this market is that there is a constant demand for housing. The level of demand is supported by a large number of visitors, for whom renting an apartment is the only way to acquire housing in the capital. In the modern housing market in Moscow, when apartment prices are not affordable for everyone, only a small percentage of Muscovites can buy their own apartment. Therefore, we can say that the rental market will be in significant demand. It should also be noted that the emerging trend towards group rental of apartments will also develop, which may lead to a shift in demand from the cheap segment towards business class housing..

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