Rent an apartment in Moscow, few can afford, but, according to the "Profile" capital lease rates remain lower than those in New York, London or Tokyo.
In addition, a rented apartment costs about two times cheaper than paying on the mortgage. Thus, the average rent "dvushki" will cost $ 800-1000, and the monthly payments for a standard loan for 15 years would amount to no less than $ 2000. In a stagnant market and the uncertainty of predictions, most potential buyers expect prices fall and postpone the purchase, preferring to rent housing.
But for landlords business becomes less profitable and has actually ceased to be business as such. The fact that the market was a lot of homeowners who have received housing through inheritance or as a result of privatization. For them the problem of return is not worth it, so that they may allow the dumping, only to quickly find a suitable client.
The rest of the lessors have to reckon with their prices. Especially now even the most modest rental apartment is on the verge of financial capacity of the average resident of the capital. Yet experts say that to date rent in Moscow, and underestimated rates clearly underestimated.
Meanwhile, the profitability of rental housing is low today as never before. This is an average 4.4% per annum in dollars. Such yield is significantly lower than inflation (11%) and interest on deposits (8-10%). And that's not counting utilities, taxes, insurance, depreciation, potential downtime and repair, in which the rental apartments, usually require more than usual.
In addition, the apartments have ceased to grow in value, and separate categories for several months actively cheaper. Thus, buying an apartment for rent has no financial sense. Payback period flat, regardless of class, purchased at current prices, when depositing its lease is 25 years. This renders meaningless the return on investment in the housing. So now, the delivery of housing - this is just an additional source of income for those who already have an apartment and who for some reason do not want to sell it.
But soon, according to experts, the situation will change. At the market will come investment apartments, the owners are well able to count, so that rates will rise sharply. Other lessors "catch up" for them. Inflation could curb the prevalence of supply over demand, but it does not threaten the capital. Demand for rental apartments of economy class in Moscow is always very high.
In summer the situation stabilized somewhat, since some visitors (mostly students) went home, and on the market in the meantime appeared very much so-called "summer" apartments. This apartment, which they rent for 2-3 months at reduced prices, while their owners are moving to the country or go on vacation. Autumn "summer" apartments will go out of circulation, back those who left, and besides a large number of freshmen coming in need of affordable housing.
Autumn in Moscow, the demand for apartments has traditionally rises, but this year is expected to particularly sharp rise against the background of supply reduction and changes in its structure in favor of investment apartments. Add to this the forecasts in the autumn increase the purchase price of housing, which many would be more profitable to sell the "excess" apartment. All this should lead to a fairly significant increase in rental rates in September and October.
So our advice for tenants: rent a new apartment now, and not for the summer, but the long term. And be sure to secure the contract "nepovyshaemost" prices during the year (no longer just do not agree). Well, back to the lessors advice: wait until the autumn, and even then boldly set a higher price for both new and for existing tenants, unless, of course, the contract allows. Good luck!
