The demand for luxury rental housing in Moscow fell by 10%

The demand for luxury rental housing in Moscow has fallen by 10%. This was told to Izvestia by analysts of the Intermark Rent agency, following the results of market research in October.

"The reduction in tenant rotation has led to a decrease in demand relative to last month, and rental rates have remained at the same level that has been observed on the market for the first time in the last year. During the month, demand decreased by 10%, showing the same number of transactions as a year earlier. According to the results of the month, the average rental price of an elite apartment in the capital is 496 thousand rubles per object per month, which corresponds to the values of September and is 8% higher than a year earlier," according to a study available from Izvestia.

It also notes that in October, the number of offers on the Moscow luxury rental market remained approximately at the level of last month, having slightly decreased by 3%. However, when compared with last year's figures, the choice of real estate increased by 9%. This is due to a decrease in demand, the release of lots that have been on the market for a long time and require updating, as well as due to the influx of new supply.

So, over the past month, the demand for renting expensive real estate decreased by 10% and demonstrated the values of the previous year.

"However, while demand slowed down at this time last year because tenants had very little choice, this year the market is behaving according to a more traditional seasonal scenario," Elena Kulikova, CEO of Intermark Lease, explained to Izvestia.

As analysts explain, rental rates reacted to the decrease in demand, which have remained virtually unchanged since last month. The average cost of apartments in the offer was 496 thousand rubles per object per month, which corresponds to the level of September and is 8% higher than a year earlier, the cost of transactions in October also did not change over the month, on average, apartments were rented at a price of 312 thousand rubles per object per month.

"Such a slowdown in the market was expected. By the autumn of this year, the balance in terms of supply and demand for luxury rental housing had leveled off, and the market had also noticeably replenished with supply in new buildings. However, if we talk about prices, then a noticeable increase in the cost of apartments, provoked earlier by a lack of supply, brought the market to budgets that are no longer so easily accepted by tenants. Therefore, we hope that the current conditions will cool down prices a little and this will lead to a complete balance in the luxury rental market," Kulikova comments.

The average area of a rented apartment in the high-budget rental market in Moscow this fall was 122 sq.m. This area is usually represented by 3-bedroom apartments with two bedrooms, which account for 37% of all transactions today. The average rate of such real estate in Moscow was about 260 thousand rubles per month. Approximately 20% of transactions accounted for one- and three-bedroom apartments: the average check for such transactions was 210,400 and 340,900 rubles per month, respectively.

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Consultant on strategic and anti-crisis management, Director of Development, LLC "Together.PRO" Alexander Berezhnoy reported on November 18 that in conditions of economic uncertainty, the situation in the rental housing market is becoming one of the key topics for residents of large cities. According to him, by the end of next year, long-term rentals may rise in price by about 10-15%. Such a trend will be associated with a combination of macroeconomic factors, among which a gradual reduction in the key interest rate will be of key importance.

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