RIA Real Estate: Rent of luxury apartments in Moscow in dollars has decreased to a two-year minimum.

MOSCOW, September 1 — RIA Novosti. Dollar prices for renting luxury apartments in Moscow have reached a two-year low, averaging $4,400 per month per unit, according to a statement from Kalinka Group.

"The average rental rate in July and August of this year was $4,400, which is one-third lower than the same period last year. The average ruble prices are at the level of the first quarter of 2014 - 265,000 rubles per month," the statement said.

According to experts at the company, in July and August, twice as many rental transactions were concluded compared to the entire third quarter of last year. The accumulated demand, which occurred during the stabilization of prices and the transition of the luxury rental market to the Russian currency, has turned into specific deals. Property owners have accepted ruble-based pricing and are ready to rent expensive apartments at established market rates, explained the press release.

"The maximum level of rental rates in the luxury segment was reached in the second quarter of 2014. During this period, there was a mass exodus of expats from the country, who rented apartments in the medium price range, as well as a mass arrival of foreigners from the close circle of the Ukrainian elite. They chose housing practically without negotiation, after the first viewing, as long as it met their size and living quality requirements," the statement noted.

The second surge in luxury apartment rental prices was recorded at the end of 2014. Tenants with average budgets for this segment effectively halted their search for apartments: transactions mainly occurred in the luxury housing market, where quality is a more significant factor than price, according to the press release. As reported, during this period, the number of transactions decreased by 30%, but the average budget for each was quite high - $9,500 or 450,000 rubles per month. Currently, everything has returned to the level of early 2014: dollar prices have decreased by 42%, while the foreign exchange rate has increased by 72%, and ruble prices have remained virtually at the level of the first quarter of last year.