Analysts have recorded a recovery of the elite rental market in Moscow

Throughout this year, the elite rental market in Moscow experienced a boom in demand, and by the fall of 2024 the situation was close to catastrophic: there were so few high-budget offers on the market that tenants agreed to compromise options, and some even lowered the requirements to the level of the apartment and the segment. However, by November 2024, for the first time in the past year, analysts note a decrease in demand, an increase in supply and the long-awaited beginning of market stabilization. Such conclusions were shared with "Izvestia" by real estate analysts of "Intermark Lease" based on the results of research of the capital's elite rental market in October-early November.

According to the research, during the last year there was a tendency to decrease the number of offers on the market of high-budget rent in Moscow. The number of apartments in the exposition decreased by 36% over the last year, 13% of which fell in the third quarter of this year.

However, this fall the market stabilized and even showed a slight increase in supply at 3% in September compared to August, the largest monthly increase so far this year.

"The stabilization of supply in October was primarily due to minimal pent-up demand. Clients did not count on price reduction and made a decision immediately when a suitable object appeared on the market, while traditionally the beginning of autumn is a period of activity of tenants who could not pick up an apartment in the hot season of late summer", - explained "Izvestia" general director of "Intermark Rent" Elena Kulikova.

According to her, another reason for stopping the decrease in the number of offers was that against the background of rising prices some tenants vacated their apartments and moved to other objects with more democratic conditions or temporarily stopped renting, as they live in two countries or cities. In October, the supply volume continued to remain at the level of September.

Although renters continue to remain active, due to the limited choice of apartments they are forced to soften the criteria for choosing a rental property. Some are choosing a more democratic segment and moving to business class, others are reconsidering the location or area of apartments. This behavior of tenants has led to a technical decline in the demand indicators for elite rentals.

"While we see a decrease in demand in the elite rental market, this fall the total value of leased apartments remained almost at the same level as last year, despite the decrease in demand. The reason was an increase in the average asking rental rate," Kulikova explained.

The shortage of supply of high-budget apartments for rent throughout the year stimulated the owners to raise prices. The average weighted average budget of the offer at the end of October 2024 amounted to 460 thousand rubles / object / month, which is 27% higher compared to October 2023. Transaction budgets have also grown: the weighted average transaction budget for the year increased by 20% and amounted to 290 thousand rubles per object/month by the beginning of November.