Yields poor in Moscow, good for very small apartments in St. Petersburg
Residential Valuation Specialist | June 24, 2014
|MOSCOW - Apartments||COST (€)||YIELD (p.a.)||PRICE/SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|75 sq. m.||754,800||2,417||3.84%||10,064||32.22|
|120 sq. m.||1,423,920||3,820||3.22%||11,866||31.83|
|160 sq. m.||2,152,160||5,498||3.07%||13,451||34.36|
|275 sq. m.||4,016,650||11,437||3.42%||14,606||41.59|
|ST. PETERSBURG - Apartments|
|60 sq. m.||231,600||1,196||6.20%||3,860||19.94|
|120 sq. m.||586,320||2,129||4.36%||4,886||17.74|
|175 sq. m.||1,155,700||3,330||
Moscow: Patriarchy Ponds, Arbat Area, Chystye Prudy, Khamovniki, Presnensky, Tishinskaya Square (Tishinka), Tverskoy (Tverskaya)
St. Petersburg: Centralnyi, Vasileostrovski, Petrogradskii, Aptekarsky Oastrov
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
An apartment in an elite neighborhood in Moscow costs on average EUR 10,000 to EUR 14,500 per sq. m. If you have a million Euros, you can only buy a small apartment. A 75 sq.m. apartment costs on average EUR 750,000 or EUR 10,000 per sq.m.
Monthly rents per sq.m. in Moscow range from EUR 32 to EUR 41. This means that a 120 sq.m. apartment can be rented out for around EUR 3,800 per month.
In St. Petersburg, prices per sq.m. of apartments range from EUR 3,860 to EUR 6,600. This means that a 120 sq. m. apartment costs on average EUR 590,000 or EUR 4,900 per sq. m.
Monthly rents per sq. m. in St. Petersburg range from EUR 18 to EUR 20. This means that a 120 sq.m. apartment can be rented out for around EUR 2,100 per month.
Gross rental yields from apartments if fully rented range from 3.07% to 3.82% in Moscow, while in St. Petersburg, rental yields range from 3.46% to 6.20%.
Round trip transaction costs can be very high for foreigners buying residential property in Russia. See our Russia residential property transaction costs analysis Italy residential property transaction costs analysis and our Residential property transaction costs in Russia compared to other countries.