Tenants close the summer season – Kommersant

Limited demand for renting high-budget country houses in the Moscow region, caused by the departure of some potential tenants abroad, led to an increase in supply in this segment by a third yoy. Finding tenants for the owners is now problematic. Activity in this market remains low now, as Muscovites who moved out of the city during the pandemic are returning to their usual life in the metropolis. The conjuncture has already led to a decrease in the average cost of rent by 25-30%.

The growth in the supply of renting expensive country houses in the Moscow region in the first quarter of 2023 by 30% year-on-year is stated in a study by NF Group. AREA board member Grigory Ashikhmin notes a 25% increase. “There has been an outflow of potential tenants abroad, both our fellow citizens and expats,” he explains.

Apple Real Estate notes an increase in supply of at least 15% per year. The number of properties exceeds demand by two to three times, says Vladimir Rodionov, head of the company’s leasing department. The expert confirms that supply in the segment of renting expensive suburban housing is growing against the backdrop of low demand.

Elena Kulikova, Director of the Intermark Real Estate Leasing Department, recalls that the maximum number of transactions in this market was concluded during the pandemic. Last year, many potential tenants were in a “frozen state” without making decisions. Since then, consultants have not noticed an increase in activity. “On the contrary, we see a trend for Muscovites who rented a house outside the city during the pandemic to move back to the city. This is due to the need for personal presence at work or school,” explains Ms. Kulikova. The NF Group notes that the number of transactions in the high-budget suburban rental segment in the first quarter was approximately the same as last year.

Active growth in supply has already led to a decrease in average rates. According to NF Group estimates, now renting a high-budget cottage in the Moscow region costs an average of 1.24 million rubles. per month, down 26% year-on-year. About 45% of the offers, according to the company’s estimates, now fall on houses on Rublevo-Uspenskoye Highway, where the highest rental price remains – 1.4 million rubles. per month. 36% of the objects are located in the Novorizhskoye direction, where the average cost is slightly lower – 1.2 million rubles. per month. The remaining lots in small shares are distributed mainly between the Kyiv, Kaluga and Minsk highways.

Grigory Ashikhmin estimates the average discount on the market at 25–30%, linking it to a large extent with the release of the offer “out of tune”. It is more difficult for owners to sell such objects, but they can be leased at a reduced rate, he explains. Mr. Rodionov calls the average discount of 15%, adding that potential tenants are now only interested in the most liquid offers.

However, finding them can be difficult. Grigory Ashikhmin draws attention to the continuing shortage of quality supply. “A house with a swimming pool, a large plot, a worthy new renovation is a rarity,” says Mr. Ashikhmin.

Elena Kulikova states that the owners have a normal attitude towards discounts. The average discount, according to her, is 15%, and in remote locations it reaches 20-25%.

Tatyana Alekseeva, director of the NF Group suburban real estate department, expects a seasonal revival of the high-budget suburban rental market in May-June. But Vladimir Rodionov believes that it will be possible to talk about positive dynamics not earlier than the second half of this year.

Elena Kulikova does not rule out that after the washing out of interesting offers in the urban rental segment, demand will shift towards the suburban market. Such facilities, in her opinion, may be of interest, in particular, to potential tenants from regions accustomed to such a lifestyle.

At the same time, there are not so many factors to increase supply. Elena Kulikova explains that not many owners who have moved abroad decide to rent out their country houses. Rather, they are used to store personal items or put up for sale. “Preparing a house for an offer on the rental market is very labor-intensive and requires large financial investments,” says Elena Kulikova.

Alexandra Mertsalova