Increased demand for long-term apartment rentals observed.
Updated Long-term Apartment Rental Trends in Novosibirsk: A Deep Dive
The buzz surrounding long-term apartment rentals in Novosibirsk for the year April 2024 compared to April 2025 has rocketed up by a staggering 10%. This surge is one of the key factors that set Novosibirsk apart in the ever-evolving Russian rental market.
As of April 2025, the selection of long-term rental properties in the city has grown by 30% compared to the same period last year. This growth is particularly noticeable in the segments of one-bedroom and two-bedroom apartments (+27% each), three-bedroom apartments (+23%), and studios (+39%).
A study by experts from "Avito Real Estate" revealed that the national trend follows suit, with a 9% overall increase in interest in long-term apartment rentals, and a more significant jump of 10% in Novosibirsk. The city's growth in rental segments includes one-bedroom (+2%), two-bedroom (+19%), and three-bedroom apartments (+22%), as well as studios (+11%).
Interestingly, the data suggests that year over year, the average cost of long-term apartment rentals in Novosibirsk has remained relatively stable, sitting at around 28,000 rubles. This sensible pricing, combined with moderate living costs, makes Novosibirsk an attractive choice for those seeking long-term rental opportunities.
If we delve deeper into the rental market dynamics, it's worth mentioning that, beyond tourist hotspots like Sochi and Kaliningrad, long-term rental prices have been on a downward spiral in the past six months. This trend might continue until mid-summer, typically a period of increased tenant activity before the start of the academic and business seasons.
In light of these findings, Konstantin Kamenev, the head of the long-term rental category at "Avito Real Estate", suggests that the next two months could be the optimal time for renters to secure the perfect property. He notes that "rent remains an alternative to mortgages for some buyers, especially in large cities with a high mobile population."
When we examine the broader housing market in Russia, several factors contribute to the demand for long-term rentals. Tightened monetary policy causing the Central Bank's key interest rate to surge to 19% has led to skyrocketing borrowing costs, impacting mortgage demand, and subsequently the housing market. Additionally, a government-backed mortgage scheme launched earlier, while initially boosting housing demand, has since caused market imbalances, with secondary housing becoming cheaper than primary housing.
Elevated construction costs and high-interest rates have resulted in a decline in new residential project launches, which can negatively impact rental markets by limiting new units entering the rental pool. Slow income growth in Russia, without a decrease in mortgage rates or significant income rises, keeps demand for homeownership subdued, potentially fueling reliance on rental housing in cities.
Comparing Novosibirsk to other Russian cities, while data specific to other locations is scarce, it's clear that cities like Moscow and Saint Petersburg typically boast higher rental prices due to their economic status and population density. Novosibirsk, as Russia's third-largest city, generally enjoys more affordable rental costs compared to these capitals but may experience gradual rental price growth as regional population and economic activities expand.
In summary, Novosibirsk's long-term rental market in 2024-2025 appears to be relatively stable in terms of rental prices. Increased mortgage rates and construction costs across Russia are anticipated to boost rental demand in Novosibirsk compared to homeownership. Compared to larger cities, Novosibirsk remains a more budget-friendly choice, but rising costs nationwide and economic pressures could gradually push rents higher over time. The rental market in Novosibirsk reflects broader national challenges, including monetary tightening, housing supply constraints, and subdued income growth, which collectively shape rental demand and pricing trends through 2025.
Investors looking at the financial sector may find the Novosibirsk real-estate market promising, given the 10% increase in interest in long-term apartment rentals compared to the national average of 9%. This growth, combined with stable rental prices and moderate living costs, makes it an attractive area for real-estate investing in the housing market.
In the upcoming weeks, experts predict that the affordable rental costs in Novosibirsk will continue to attract renters, especially as tight monetary policy and high mortgage rates make homeownership less financially feasible across Russia. Thus, investing in the Novosibirsk housing market may prove to be a strategic move in the real-estate sector, especially for those seeking long-term rental opportunities.
