High mortgage rates warm up rental market

According to calculations by Avito Real Estate, the volume of supply of apartments for long-term rent in Kazan has decreased by 42.4% over the year, while demand has increased by 12.3%. As a result, the average hiring rate in the capital of the republic has increased by 20% over the year — from 25 to 30 thousand rubles. The rent of three-bedroom apartments has risen the most (+27.5%), the rental of studios has risen the least (+15%).

Teachers and lawyers pay more than half of their salaries for rent

Analysts of Avito Real Estate and Avito Jobs jointly studied how much of the salary has to be spent on renting a one-room apartment in million-plus cities by representatives of eight popular professions — a sales consultant, a teacher, an accountant, a lawyer, a courier, a welder, a real estate agent, and a trucker.

On average, in Russia, truckers have the least funds to rent housing. With an average proposed salary of 133 thousand rubles and the cost of renting a “one-bedroom apartment” of 23 thousand rubles, a representative of this profession will have to give 17% of earnings. Also, a relatively small part of the salary will be spent by real estate agents (21%), welders (27%), and couriers (33%). But for lawyers, accountants, teachers and sales consultants, rent will cost more than half of the salary.

In Kazan, a teacher is forced to give 68% of his salary for renting a “one-bedroom”, a lawyer gives a little less — 62% — for rent. The best things are with truckers (they give only 16% of their salary for rent), real estate agents (21%) and welders (32%).

“The most expensive one-room apartment rental among Russian cities with millions of people is in Moscow, St. Petersburg and Yekaterinburg. Moreover, in two capitals, housing rental will take away a larger share of the average salary offered than in other megacities — 59% and 47%, respectively. From the point of view of prices, rental housing is more profitable in Voronezh, Chelyabinsk, Samara and Omsk. In these cities, representatives of eight professions who participated in the study will have to pay on average a little more than a third of the average salary for rent," commented Konstantin Kamenev, the head of the long-term rental category of Avito Real Estate.

Mortgage has become unavailable

Mortgage payment in the secondary market today has become critically higher than the cost of rent. “A year ago, one-room apartments were rented for 20-25 thousand rubles, now for 35-40 thousand rubles," he gives an example.

According to the expert's expectations, the rental market will continue to grow. “There is a shortage of supply in Kazan today, it is very difficult to find an apartment for clients," explained Marat Gallyamov. “The old dilapidated fund is already very reluctanty bought. Everyone wants a freshly renovated apartment, and most importantly, people are willing to pay. Therefore, rent and the business around rent are developing very dynamically.”

The potential of the rental market, according to his estimates, is far from being exhausted. In the next 5-6 years, demand will be at a fairly high level: “Kazan is growing, developing and adding. While mortgage rates will be at the current level, the demand for rent will not decrease. There are not enough apartments on the market.”

Apartment owners lured away by tourists

The increase in demand is connected, among other things, with a decrease in housing affordability — for many, renting an apartment remains the only option.

Not all objects, according to Khabibrakhmanov's forecasts, will return for long-term rent. Those that are in good locations in Vakhitovsky and Novo-Savinovsky districts, with fresh designer repairs, will remain on the daily rental market. “The economy segment is already starting to return, but with higher price tags. And this return will be temporary," he believes.

Next year, due to the increase in the number of tourists and guests of Kazan, even more objects will switch to daily rent, so the demand in the market will only grow.

A surge in sales in the market

Rent, according to Anastasia, today is an indicator of what is happening in the real estate market. Its growth in 2023 was influenced by inflation, rising utility bills, as well as the growth of monthly mortgage payments.

At the same time, Gizatova is confident that the offer on the rental market will be replenished in the near future due to a new wave of new buildings. “They will be stuck in the sale, and this will be the next stage of market stagnation. A large percentage of such apartments will enter the rental market," she believes.