Expert does not rule out the rise in rental housing prices in Russia

The growth of rental prices is related to how quickly the key rate reduction will take place and whether the population will take mortgages, as many people prefer to have mortgage obligations, Irina Radchenko, president of the International Academy of Mortgage and Real Estate, told Izvestia on January 15.

According to the expert, last year the rent increased by 30%. This is due to the fact that after COVID-19, prices for residential and commercial space dropped significantly due to the restrictions imposed, and people showed less interest in renting due to these restrictions. At this point, prices are just getting back to those rates.

"[Prices] in 2025 depend on how fast the key rate will fall and whether citizens will be comfortable with mortgages because most people prefer to take out a mortgage for 20-30 years rather than rent [housing]," Radchenko explained.

According to her, if citizens take mortgages with higher rates, the rental housing market will have a high demand. In addition, it is important to consider the decrease in properties for sale due to mortgage rates.

"[Many] sellers of apartments do not wait out the moment of stagnation in the market and will put them up for rent.<...> I think [supply] will increase, well, and demand, respectively, will depend on people's financial situation, how fast their incomes will grow. The rent will grow within the limits of inflation," Radchenko summarized.

Earlier, on January 14, analysts of the service "Yandex Rent" told "Izvestia" about the fact that in Moscow the cost of rental housing decreased by 12%. According to experts, this is due to low demand in the long-term rental market. For example, in the "old" Moscow, apartments for long-term rent have fallen in price most of all in Meshchansky, Babushkinsky and Butyrsky districts.