From January to May 2023 in Moscow, the demand for rental luxury real estate grew by 11%, in annual terms, the increase was 28%, according to a study by the real estate agency Intermark Real Estate. The reason for the growth in demand for luxury housing is the return of Russian relocators from abroad.
In connection with the return of Russians from abroad, according to realtors, there is a significant decrease in supply volumes on the market – from January to May, 34% of apartments left the elite rental market. This caused an increase in rates, so the weighted average supply budget at the beginning of May 2023 amounted to 337 thousand rubles. per month, which is 5% more than last year, according to the study.
“One of the main outflows comes from the UAE due to the approach of the summer season. In anticipation of high summer temperatures, the owners are ready to return home for the holidays, there are also those who have returned from Turkey and Thailand. Such clients are ready to live in several countries, some of them return to their apartments for a while and remove them from the market, ”said Elena Kulikova, director of the rental department at Intermark Real Estate (quoted from “Interfax”).
It is clarified that the revival now observed is a trend reversal: last year, the volume of supply was constantly growing, and demand was declining due to the departure of wealthy Russians abroad after the outbreak of the military conflict between Russia and Ukraine. According to real estate market experts, the owners of apartments in Khamovniki, an area traditionally popular with wealthy Russians, now even refuse to provide discounts to tenants, which was not the case last spring. But on Chistye Prudy housing is still rented at a discount.
For more information about the situation on the market, see the Kommersant publication “Tenants have returned to expensive apartments.”