Luxury cheap: rent of luxury apartments in the center of Moscow is getting cheaper every month

Alexander Dybin

The offer on the luxury housing rental market in the center of Moscow has almost doubled over the year.

Only in December last year, the number of available apartments increased by 8%. Such data is provided by Intermark Real Estate agency in its market research. Experts attribute the trend to the relocation of clients who refused to rent such apartments, and also became less interested in such housing. All this has affected prices as well.

"This increase can be explained by the departure of some landlords and tenants and, as a result, the release of real estate, which provoked an increase in the number of apartments in the offer" , - the authors of the study note, "it can be judged that the volume of supply during 2022 increased almost every month, while the maximum growth rate was after February 24 - then the number of lots for rent in comparison with the previous month increased by a third at once. Demand fell by 18% in 2022 compared to last year. The decline in the number of transactions is explained by a decrease in the volume of the target audience due to the relocation of some customers abroad."All this has affected prices as well.

Now the average cost of elite rental in the capital is 322,000 rubles per month and this is 11% less than a year earlier. This corresponds to the prices of 2020. At the same time, customers are not ready for this price, the average demand budget was 217,000 rubles. Therefore, most of the landlords are ready to "move" on the price. According to the study, 51% of transactions are made with discounts.

"The main reasons for the reduction in rates were: the discounts that tenants request, an overabundance of offers on the market, as well as the relocation abroad of a part of the secured audience of tenants," the authors summarize.

From the point of view of geography, most transactions in 2022 were concluded in the Arbat-Kropotkinskaya area – 17% of all transactions, in second place in terms of demand for the Lubyanka-Kitay-Gorod and Leningradsky Prospekt locations – 11% each. Tverskaya-Kremlin and Zamoskvorechye have also become popular areas.

Another touch to the elite rental picture is a relatively small offer in new homes. More often in renting apartments in buildings of Soviet and pre-revolutionary construction.

"In the new houses of the Central Administrative District of Moscow, built since 2015, about 14% of all exhibited offers in the high–budget segment are offered for rent, while the predominant share of real estate is represented today in houses of earlier years of construction - 86% of all offers, of which 22% are apartments in pre-revolutionary houses", - noted in the agency.