Profitability from Renting Out Apartments Decreases to 5.5%

The average profitability from renting an apartment in Russia has decreased over the past year from 6% to 5.5% per annum, and the payback period has increased from 16.6 to 18 years, the portal “World of Apartments” notes.

“A year ago, the indicators were better – 6% and 16.6 years. But since real estate prices have increased significantly, and the rent has remained the same or even … has fallen in price, the profitability of apartments is now lower, and they pay off longer. It is possible that the situation will improve in 2022. ., and the indicators will again be at the level of 2020 “, said the general director of “World of apartments” Pavel Lutsenko.

The most profitable were apartments in Astrakhan and Nizhny Tagil, they brought the owners 9.5% per annum. Apartments in these cities, bought for rent, will pay off in ten and a half years.

The lowest-income housing is located in Sochi: yield – 3.5%, payback – 28 and a half years.

Moscow took the penultimate place on the list – 3.7% and for almost 27 years. St. Petersburg also entered the top ten cities with low income – 4.4% and 22.6 years.

The profitability indicators are calculated for 70 Russian cities based on the average price of an apartment in the secondary market and the rental rate in the region.

It is conventionally accepted that a two-room apartment is rented out without interruption, and the landlord’s expenses for repairs and taxes are not taken into account.