Housing rent will increase by 5% to 10% in big Russian cities this year. Experts interviewed by Izvestia predict that in Moscow the rates will go up even higher, by 15% to 20%.
Rents will be going up due to growing housing and utilities charges as well as due to the fact that new housing is getting more expensive as real estate developers are gradually transitioning to escrow accounts.
The price surge in Moscow will also be triggered by rejuvenation of the housing available. The rental market is being replenished with apartments in high-rises that cost more than older housing. Also, the number of inexpensive offers is decreasing while pricier apartments are increasingly more often put up for rent. These trends may drive up the demand for inexpensive rooms.
Another reason for the rising cost of rental housing is the fact that property owners have to pay taxes. They will be registering as self-employed, which will also contribute to the price hike.
As usual, rental rates will go up the highest in late summer ahead of a new business season. In summer, on the contrary, the rates will drop due to the abundance of offers, experts note.