20. Juni 2012 
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Elite residential rental market demonstrates a stable activity
IntermarkSavills has presented the Moscow high-budget residential rental market report of May 2012. According to the report, in May 2012 the high-budget rental market demonstrated a stable activity. In spite of the long holiday’s period, when the number of requests from potential tenants traditionally decreases, the volume of demand remains on the high level and exceeded the indicators of April 2012 by 3%.
After a sharp rise of average budget performance in April 2012, an average budget of an apartment requested by a potential tenant in May 2012 decreased by 5% compared to the previous month and accounted to $ 5 872 per property per month. In comparison to 2011 the average budgets of demand still do not show any growth.
The volume of supply in the high-budget segment of the rental market keeps decreasing. According to the results of the end of May 2012, it fell by 1% more compared to the previous month, and by 7% with respect to the figures recorded in
May 2012.
On the background of the decrease in free supply volume in the high-budget rental market, the analytics keep remarking a positive dynamic of supply budget growth. Thus, by the end of May 2012 an average supply budget accounted to $ 7 405 per property per month that is 1% higher than the figures recorded in April 2012 and 7% higher the previous year’s indicators (May 2011 - $ 6 896 per property per month).
Galina Senko (Tkach), Director of Leasing Department of IntermarkSavills, said:
“The rental market, which always is very sensitive to foreign currency fluctuations, is becoming unstable again. With the dollar strengthening, the landlords want to fix the rental rate in a foreign currency or to establish currency corridors which will allow changing the rate in case of any serious alterations on the foreign currency market. This just extends negotiations or suspends deals making. In terms when 80% of deals are made with corporate tenants, the market totally depends on their requirements, so these are fix prices in rubles and immutability of the rental rate during the whole term of the agreement”.
After a sharp rise of average budget performance in April 2012, an average budget of an apartment requested by a potential tenant in May 2012 decreased by 5% compared to the previous month and accounted to $ 5 872 per property per month. In comparison to 2011 the average budgets of demand still do not show any growth.
The volume of supply in the high-budget segment of the rental market keeps decreasing. According to the results of the end of May 2012, it fell by 1% more compared to the previous month, and by 7% with respect to the figures recorded in
May 2012.
On the background of the decrease in free supply volume in the high-budget rental market, the analytics keep remarking a positive dynamic of supply budget growth. Thus, by the end of May 2012 an average supply budget accounted to $ 7 405 per property per month that is 1% higher than the figures recorded in April 2012 and 7% higher the previous year’s indicators (May 2011 - $ 6 896 per property per month).
Galina Senko (Tkach), Director of Leasing Department of IntermarkSavills, said:
“The rental market, which always is very sensitive to foreign currency fluctuations, is becoming unstable again. With the dollar strengthening, the landlords want to fix the rental rate in a foreign currency or to establish currency corridors which will allow changing the rate in case of any serious alterations on the foreign currency market. This just extends negotiations or suspends deals making. In terms when 80% of deals are made with corporate tenants, the market totally depends on their requirements, so these are fix prices in rubles and immutability of the rental rate during the whole term of the agreement”.
Quelle: IntermarkSavills
