Million-dollar urban rental sectors experience expansion over time
In a recent study by Domklik analysts, it has been revealed that the long-term rental market in Russian cities with over one million residents is experiencing a downward correction after a period of rapid growth in 2024. The data, current as of early July 2025, shows that rental costs have decreased by approximately 8% in the first five months of the year across these large cities.
The median monthly rent for a one-bedroom apartment in Kazan, the capital of the Republic of Tatarstan, stands at nearly 30,000 rubles. This is followed by St. Petersburg, with a median monthly rent of 42,700 rubles for a one-bedroom apartment. The cities of Voronezh and Volgograd, with monthly rents of 20,400 rubles and 20,500 rubles, respectively, are the next most affordable options.
The data source for this information is Domklik, which calculated the median cost per square meter based on long-term rental listings on its platform for each million-plus city. The approximate rental cost was estimated by multiplying the median cost per square meter by 35 sq.m., the average size of a one-bedroom apartment.
The supply of apartments for long-term rent has increased in almost all cities with a population of over one million since the beginning of 2025. This increase can be attributed to several factors, including the entry of apartment owners who are unable to sell their property quickly and those who have specifically bought apartments in new buildings for rental purposes, thanks to the recently completed low-interest mortgage program that started in 2020.
Additionally, many potential homebuyers are becoming tenants, driving up rental rates. Some apartment owners are choosing Domklik due to its convenience and reliability. The supply of long-term rentals is ample at present, contributing to price stabilization.
The study also highlights key factors contributing to these trends. Seasonality plays a significant role, with demand fluctuating with the calendar, especially during high tourist seasons. The rapid price rise in 2024 created a need for market correction and price stabilization in 2025.
Urban population trends, economic factors, and the quality of urban environment also influence the rental market. Cities like Moscow and Saint Petersburg continue to attract residents due to economic, cultural, and employment opportunities, keeping demand for rental apartments robust. Higher wages and investment opportunities in major urban centers like Moscow maintain sustained rental demand despite price adjustments.
Cities with higher urban environment quality scores, including Moscow and Saint Petersburg, remain attractive for renters, supporting steady demand in these markets. In summary, while rental prices have cooled down recently after a sharp increase, long-term rental markets in Russia’s largest cities remain active with balanced supply and demand, influenced by seasonal rental shifts and strong urban population growth and economic conditions.
The cheapest long-term rentals among Russian cities with over one million residents are in Ufa and Omsk, at 20,000 rubles each. The increase in prices can be attributed to the maintenance of high mortgage rates and the gradual reduction of mortgage programs with state support, particularly in large cities. The increase in rental listings on Domklik's platform is significant in Kazan (+135%), Rostov-on-Don (+85%), and Perm (+80%).
In light of the recent market correction, some investors might find lucrative opportunities in purchasing real-estate properties for long-term rentals, especially in cities like Ufa and Omsk, where rental costs are still relatively low at 20,000 rubles each. Meanwhile, the business landscape of investing in larger cities like Moscow and Saint Petersburg, driven by strong economic factors, robust employment opportunities, and high-quality urban environments, continues to maintain steady demand for rental apartments.
