Is Renting Actually Cheaper Than Buying Right Now?

Moscow's renters are paying an average of 35,000 rubles per month for a one-bedroom apartment, while buyers are facing mortgage payments of over 40,000 rubles per month for a similar property, according to recent data from the Moscow Real Estate Association.

This disparity matters now because Moscow's real estate market is experiencing a surge in demand, driven by the city's growing population and limited housing supply. As a result, prices are rising, and buyers are facing increasing pressure to secure a property. However, with renting becoming a more viable option, many are left wondering whether buying is still the best choice. The city's infrastructure projects, such as the expansion of the Moscow Metro and the redevelopment of the Khamovniki district, are also contributing to the changing landscape of the real estate market.

In neighborhoods like Arbat and Patriarch's Ponds, renters can find relatively affordable options, with prices starting from 30,000 rubles per month for a one-bedroom apartment. In contrast, buyers in these areas are facing prices of over 10 million rubles for a similar property. Organisations like the Moscow City Government's Department of Economic Policy and Development and the Russian Guild of Realtors are working to address the issue of affordability, with initiatives like the Moscow Rental Housing program and the Affordable Housing project.

A Closer Look at the Numbers

According to data from the Russian Central Bank, the average mortgage rate in Moscow is currently around 10.5%, with some banks offering rates as high as 12%. This means that buyers are facing significant interest payments on top of their monthly mortgage payments. In contrast, renters are not responsible for maintenance and repair costs, which can be a significant advantage in a city where the average cost of repairing a one-bedroom apartment is around 150,000 rubles. As of June 2026, the average price per square meter in Moscow is around 220,000 rubles, making it one of the most expensive cities in Europe.

So, what happens next? For those considering their options, it's essential to weigh the pros and cons of renting versus buying carefully. While buying may still be the best choice for some, the current market trends suggest that renting could be a more affordable option in the short term. As the Moscow real estate market continues to evolve, it's likely that we'll see more innovative solutions to the affordability crisis, such as the development of new rental housing projects and initiatives to support first-time buyers. In the meantime, renters and buyers alike will need to stay informed and adapt to the changing landscape of the city's dynamic real estate market.