Students will have to move to the Moscow region
This summer, like the year before, there was practically no summer lull in the capital's long-term rental market. Increased demand began earlier than usual. Several new factors have immediately influenced the activity of tenants who, in conditions of an acute shortage of economy-class apartments, are trying to find a suitable option.
As Oksana Polyakova, Deputy Director of the Apartment Rental Department at INKOM-Real Estate, told MK, there was no lull in the capital's housing rental market either in winter or spring this year. A new upswing began in June: the number of requests increased by 20% compared to April and May. In July, demand increased by another 5%.
The unusual revival, according to the analyst, was stimulated by several new factors at once. The tightening of mortgage lending conditions had an effect, when some potential buyers were forced to abandon their plans and temporarily began to rent housing. Demand was also fueled by clients trying to buy apartments in new buildings before the end of the preferential mortgage program. It is no secret that they often rent living space while waiting for the completion of the house.
The rental supply is growing slowly, as many tenants are extending their leases to save money and fearing that they won’t be able to find an alternative that is reasonably priced. And these properties are not coming to market. “In addition, we are not yet seeing a mass release of apartments purchased during the period of high demand on the primary and secondary markets in 2023. The summer revival is explained by the fact that many are trying to find options now, before the traditional high season begins,” she added.
“The factor of applicants also has a significant impact on the Moscow rental market. Every day the number of requests for apartment rentals from students, including both freshmen and senior students, is growing,” — marked «MK» Head of the rental department «Miel» Maria Zhukova. According to her, renting an apartment near prestigious universities, such as Moscow State University, Higher School of Economics, Moscow State Technical University and others, is more difficult not because there are few of them, but because they are expensive. In these areas, many owners specialize in renting out apartments to students. And the price tags here are significantly higher than the market average. For example, if the average rental rate in Moscow is about 40 thousand rubles. for a one-room apartment, then near universities even old apartments with grandma’s renovation will cost at least 50 thousand rubles.
“Students are often interested in apartments on the outskirts, but along the metro line they need, in order to get to the university without transfers. They also often consider New Moscow, where prices are lower than in the old city boundaries,” — Polyakova emphasized. According to her, there is currently an acute shortage of economy-class apartments in all districts of Moscow. Figuratively speaking, renters line up for affordable housing. As soon as a relatively cheap and marketable apartment appears in an advertisement, it immediately attracts attention and is rented out literally in hours. Accordingly, all such proposals are sorted out quickly and do not have time to accumulate in the exhibition. “Apartments are rented out most quickly in areas remote from the center (since housing here is cheaper than in prestigious locations), where there is a metro station or MCC within walking distance from the house,” — added by the analyst.
According to Zhukova, last June there were 25.7 thousand objects on display in Moscow, which is 5% more than the month before. The growth in supply volume has continued since the beginning of the year and increased by 20% in the first half of the year. However, compared to the same period last year, the total supply is one third lower.
Under these conditions, apartment owners cannot count on discounts. Traditionally, the highest rental rates are in prestigious areas with the most expensive housing stock — mainly in the Central Administrative District (Khamovniki, Arbat, Yakimanka, Presnensky, Tverskoy, Zamoskvorechye).
As reported by «MK» Director of the secondary real estate department of Est-a-Tet Yulia Dymova, the average cost of a one-room apartment for Moscow within its old borders starts from 35 thousand rubles. — for this money you can rent an apartment with an area of 31-33 square meters. m, as a rule, in a five-story building, in an old building, in poor transport accessibility. “But even such options are few in supply today. Now in the exhibition you can find housing from 39 thousand rubles. and more expensive. Therefore, it makes sense for an applicant who has entered a university, that is, a freshman who is going to rent an apartment, to do this as quickly as possible,” — noted the analyst.
According to Dymova, the top cheap areas begin with Western and Eastern Biryulyovo, Zyablikovo and Orekhovo-Borisov. Also, the Golyanovo, Shchelkovsky and Yaroslavsky districts always lead in accessibility. By the way, in the latter there are quite a lot of good universities and, taking into account the fact that transport accessibility is not very well developed here, in these locations you can find quite a lot of rental apartments in the price range of about 40 thousand rubles. Next on the list are Veshnyaki and Perovo. The low price ranking does not include areas in the north and north-west of Moscow. Only Yaroslavsky, which is located in the northeast, made it to the top. As for Tushino — here you can find literally a few options for inexpensive lots, this area closes the list, here rent starts from 40 thousand rubles.
“Taking into account the rather small volume of supply that may remain by the beginning of the business season, many students, that is, potential tenants, will have to change their search circle and shift it to the Moscow region or to the nearest satellite cities of Moscow and New Moscow,” &ldash; the analyst concluded.
“General business activity, which has been growing since August, will further fuel the already high demand in the rental segment, and prices will increase by another 5-10%,” — the economist believes. The peak of excitement in the Moscow rental market traditionally occurs at the end of August – early September, when students return to the city for the start of the school year and the business season begins. During this period, the demand for rental housing increases significantly, which leads to an increase in rental rates. According to the forecast, average rental rates during this period may jump by 4-5%, but in conditions of high demand and limited supply, more significant jumps are possible, up to 15%, as was the case in previous years.
1 Arbat Central Administrative District 110,000 +29.4%
2 Krasnoselsky VAO 80,000 +23.1%
3 Printers SEAD 50,000 +19%
4 Krylatskoe JSC 65,000 +16.4%
5 Khovrino SAO 57,000 +14%
6 Ivanovskoe VAO 45 100 +12.8%
7 Yakimanka Central Administrative District 100,000 +11.3%
8 Nagorny South Administrative Okrug 70,000 +11.1%
9 Orekhovo-Borisovo North Southern Administrative Okrug 50,000 +11.1%
10 Khoroshevo-Mnevniki SZAO 82 953 +10.6%
Source: «Yandex Rental».
1 Biryulyovo East, st. Donbass, South Administrative Okrug studio, 16 sq. m 30,000
2 Losinoostrovsky, Kominterna street, NEAD 1 room, 33 sq. m 30 000
3 Koptevo, blvd. Sailor Zheleznyak, SAO 1 room, 36 sq. m 35 000
4 Tekstilshchiki, 8th st. Textile workers, SEAD 1 room, 45 sq. m 35 000
5 Yaroslavsky, Yaroslavskoe highway, SVAO 1 room, 40 sq. m 35 000
6 Sokolinaya Gora, Budyonny Ave VAO 1 room, 24 sq. m 35 000
7 Biryulyovo East, st. Lebedyanskaya Southern Administrative Okrug 1 room, 39 sq. m 37 000
8 Zyablikovo, st. Kustanayskaya, Southern Administrative Okrug 1 room, 35 sq. m 37 000
9 Biryulyovo East, st. Biryulevskaya, South Administrative Okrug 1 room, 37 sq. m 38 000
10 Yuzhnoye Butovo, st. Yuzhnobutovskaya, South-Western Administrative District 1 room, 40 sq. m 40,000
Source: «INCOM-Real Estate» .