Surge in Rental Prices Across Russia: A 31% Increase in 2024

Mon 13th Jan, 2025

In a significant shift within the housing market, rental prices in Russia experienced a remarkable increase of 31.4% throughout 2024. This surge has been attributed to various economic factors, including inflation, rising interest rates, and the cessation of government mortgage subsidies. These developments have collectively exerted considerable pressure on the rental market.

According to an analysis by the real estate platform Mir Kvartir, which examined rental trends in 70 cities, the average monthly rent for a one-bedroom apartment reached 27,259 rubles (approximately $265) last year. Meanwhile, two-bedroom apartments averaged 33,476 rubles ($325), and three-bedroom units were listed at an average of 42,258 rubles ($410).

Previously, in 2023, renters could expect to pay between 13,000 to 16,000 rubles per month for an average one-bedroom apartment in cities with populations exceeding 300,000. However, this has become increasingly rare, reflecting the upward trajectory of rental costs.

The increase in rental prices varied by apartment size: one-bedroom units saw a 31.4% rise, two-bedroom units rose by 25.8%, and three-bedroom apartments increased by 27.6%. In contrast, the previous year had recorded relatively smaller increases, with one-bedroom rentals rising by 22.2%, two-bedroom by 19.9%, and three-bedroom by 15.6%.

Industry experts suggest that landlords have been compelled to raise rental prices due to ongoing inflationary pressures, although some of these effects were somewhat mitigated by wartime wage increases in Russia. Additionally, a growing number of homeowners have opted to rent out their properties rather than sell them, particularly after the government's withdrawal of mortgage subsidies and the subsequent rise in Central Bank interest rates. This shift has kept many potential buyers in the rental market, further intensifying demand for rental properties.

Moscow has emerged as the city with the highest rental costs, with one-bedroom apartments now averaging 73,000 rubles (about $710) per month, reflecting a staggering 43% increase compared to the previous year.


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