Yandex Rent reported a likely increase in apartment rentals by 15% by the end of the year
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The average price of rental real estate in Moscow by the end of 2024 may rise to 15%. At the end of last year, the number of apartments for rent increased by 17%.
“In 2024, the imbalance between buying and renting an apartment will remain, which will continue to push rental rates up. Thus, by the end of the year we can expect an increase in the average rental price to 15% in the most popular segments,” the Yandex service told Kommersant (MOEX: YNDX) Rent”.
The head of the service, Roman Zhukov, said that the increase in rental rates will be fueled by demand from tenants. Due to the high mortgage rate, renting an apartment will be more profitable than buying it. In addition, Yandex Rent notes the continuing trend towards moving from the regions to the capital and from the outskirts to the city center.
By November 2023, the supply of rental apartments was approximately halved, and the average cost increased by 30–40%. The head of Yandex Rental cited the reasons for this as the return of some relocants to Russia and the increase in the key rate of the Central Bank. In December 2023, the supply of apartments for rent increased by 17%, while price growth slowed.
The service notes that in 2024 the Moscow rental market will be replenished with apartments in new buildings with fresh renovations, which will partially slow down the rise in prices for rental apartments.
Read more about the situation on the real estate market in the text of Kommersant. “Rent is moving away from demand”.
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