Moscow's rental surge: High demand and soaring prices
Rental prices in Moscow are rising, and finding an affordable option is becoming increasingly difficult. High interest rates on loans and growing demand mean that renting is the only option for many residents of Russia.
In recent months, renting apartments in Moscow has become significantly more expensive. "The average cost of renting a one-bedroom apartment in the Moscow region increased by 26.4% over the year, and two-bedroom apartments by 10.9%," said Olga Pavlinova, director of the Residential and Commercial Real Estate Rental Department of the federal company "Etazhi," to the editorial team of the "Komsomolskaya Pravda" newspaper.
This is how much Russians pay for rent
According to the portal kp.ru, the average cost of renting an apartment with a floor area of 20-25 square metres on the Moscow Ring Road is about 50,000 roubles, or approximately £355.
If someone is looking for a larger place, such as a one-bedroom apartment, they should expect to pay around 60,000-70,000 roubles per month (£425-£500). According to the portal, to afford rent, one must earn at least 100,000 roubles net (£710).
According to data from Etazhi, average rental rates for one-bedroom apartments have increased by 28.7% throughout Russia and by 26.3% for two-bedroom apartments.
The portal recounts the story of a woman who received a job offer in Moscow, which she considered well-paying. However, it turned out that with that salary, renting even a single room to cover basic expenses for food, clothing, and holidays was only possible in the distant suburbs, with the prospect of daily commutes to work lasting one and a half hours.
Reasons for the increase in rental prices
Experts point to several key reasons for the increase in rental prices. First and foremost, the high mortgage interest rates (currently at 30%) mean that many potential buyers opt out of purchasing their apartments, increasing demand for rentals.
Despite the rise in rental costs, renting an apartment in Moscow is more than twice as cheap as paying off a mortgage with current market interest rates.
The price of a studio in a dormitory is 12 million roubles (£85,000), and the mortgage interest rate is 28%. With a 30-year agreement and an initial payment of 3.6 million roubles (£25,500), the monthly mortgage payment would be 196,000 roubles (about £1,390).
According to Roman Zhukov, head of the Yandex Rent service, another reason rental prices are rising is that some investment apartments purchased between 2020 and 2024 with cheap mortgages are entering the rental market, but their owners are trying to rent them at higher prices to recoup the costs incurred.
Experts predict that by June-July 2025, prices will remain at their current level and then begin to rise with increased demand and rising costs of maintaining apartments.
