IRN: there are no prerequisites for a noticeable increase in rental rates in Russia invest in real estate. But the strong rise in price of square meters negatively affected the rental yield, according to an article published on the website of the analytical center “Indicators of the real estate market” (IRN).
According to analysts, secondary apartments in Russia have risen in price by 25 percent over the year , and the annual growth of rental rates was about five to ten percent. The profitability of a rented apartment for nine million rubles is estimated at about 5.1 percent (before taxes and payment of utility bills). “The graph of the apartment profitability index looks down,” experts say. “A year ago, investments in housing were six times more profitable than deposits, now this ratio has decreased to 3.5 times.” … Accordingly, there are no prerequisites for a noticeable increase in rates either. In addition, an increase in the cost of renting housing in the foreseeable future will be hindered by the entry into the rental market of apartments purchased during the recent excitement on the market of new buildings.
“In a year or two or three, the current new buildings, which were massively sold out in 2020-2021 years. And many investment apartments will enter the rental market at about the same time, “experts warn.
Earlier it turned out that tenants in large regional centers of Russia are ready to pay an average of 24,000 rubles a month for rental housing. More than half of the tenants of rental apartments would not like to enter into a lease agreement with an annual indexation of rates.