The rental price of elite real estate in Moscow fell by a third because of the war

In 2022, the demand for the purchase of apartments in the elite housing segment in Moscow fell by 44%, for their rent – decreased by 18%. This was reported by The Moscow Times with reference to data from real estate agencies. Among the reasons for this, experts name the war in Ukraine, due to which many owners of elite apartments went abroad.

The average demand budget for renting luxury housing, almost half of which is located in the center of Moscow, decreased to 217 thousand rubles per month per hour, and in December it fell to 175 thousand, which is 35% lower than the average monthly budget in 2021.

In one hour, 900 deals on the purchase of luxury housing were completed in Moscow, compared to more than 1,600 last year.

Among the reasons for the decrease in demand after the Russian invasion of Ukraine, experts from real estate agencies cite uncertainty, due to which “many buyers took a wait-and-see position” or refused deals, as well as “the possibility of relocating family and business abroad”, which was used by some wealthy Russians.

At the same time, it is noted that the number of elite apartments in Moscow for rent increased by a third immediately after the start of the war, after that it gradually increased, and after the announcement of the mobilization of Russians for the war, it increased by another 8%.