When to hand over and when to rent apartments in Minsk in 2010

The come year 2010 will differ from the past more than from all previous "quiet" years. And let in the market of rent the rests of habitual seasonal prevalence remain, finally it does not cancel total decrease in rates.

When reflect on change of demountable habitation, and when – about favourable time to lease the apartment? Belarus participants of the market have shared with us the reasons in this respect.

Do we trust in seasonal prevalence?

The crisis has not changed former seasonal prevalence and pieces for fulfilment of optimum transactions remained former. The greatest demand and, accordingly, a rise in prices within a calendar year is necessary for the spring and autumn. During this period of time lessors have a possibility to hand over them on conditions as much as possible favourable to. Rent apartment is better in calm in the rent market – after New Year's holidays and during the summer period.

But we will not forget that 2009 year has already shown to us: seasonal prevalence not so such inevitable attribute of the market of rent as it was in former some years. Attempts of room owners for old time's sake to raise the prices in an early autumn, it is possible to tell, have failed: the prices though have grown it is a little, but have quickly enough returned back so growth has choked, and without having begun.

Thus experts assert that in December (it is far not the most active for rent month) the market left in a positive zone: on monthly results in rates have a little lost one-room economical apartments for rent in Minsk, in other segments small growth was observed.

According to the statistics given by analysts of "Innovative group WINner", average rates of rent from the moment of last supervision (on December, 28th, 2009) have slightly grown – from 0,5 % in a segment of two-room economical apartments to 2,8 % for economical three-room apartments for rent. Democratic one-room apartments for rent, remaining the most demanded offer in the market, have added in the price of 1,1 %. The average price of one-room economical apartment for rent as of January, 15th – 25,5 thousand rbl., two-room apartment for rent – 36 thousand rbl.

Concessions are inevitable

It is desirable to hand over apartment till April, then, possibly, there will come a "dead season" till September: the prices for rent, probably, will a little more decrease, and demand traditionally as in summer will be reduced. The small concession to the tenant in rent cost in some thousand roubles is with interest compensated by the received payments for the following half a year, and the apartment will not be empty.

As a whole, strategy for handing over a minimum on the nearest half a year looks as "to hand over more likely and to be ready to concessions". Let's argue logically: more often habitation delivery in rent pursues the maintenance aim to its owner of the additional income. So what sense to refuse the income today in expectation of possible growth in the future of rent rates? Quite obvious conclusion from here arises: to hesitate with tenancy of sense is not present. Not to lose in the income if suddenly the market sharply goes upwards, it is possible to fix in the contract concluded with the tenant the right of revision of the rent rate in half a year (but it is necessary to remember that the given point gives the chance to demand and rate decrease from outside the tenant - the rights of the parties of the transaction should be equal). Here in this moment now the biggest auction between the tenant and the lessor, some percent of the discount actually not so are important.

What expect from rates of rent of apartments in 2010? In forecasts for 2010 the majority of the experts put possibility of decrease in rates till the spring on 10%, and even on 15%. The reasons for that are simple: the offer volume has grown, according to Innovative group WINner, on the average on 26% in comparison with the end of December. Considering that within at least one and a half months up until that time the tendency of growth of the offer remained, the version about the further decrease in rates looks quite realistic.

Expensive, cheap, demountable

Decrease in rates is expected first of all not in the overestimated business class (which already became quite democratic under standards, say, 2008) and not in a highly specialised segment of elite rent apartments, but in the most popular economical apartments.

Poor-quality apartments (apartments in an emergency condition, the apartments requiring under repair, apartments without furniture and sanitary technicians etc.) are reflected in average rates on the market: while rent of standard one-room apartment costs on the average 20-25 thousand rbl. depending on parametres, the sub-standard habitation can cost in 2, and in some cases – even in 3 times is cheaper. Room owners who urgently require the large sum and are ready to hand over apartment much below the market, but with an advance payment for a year.

The market of elite apartment rentals has appeared to a lesser degree is subject to crisis influence, and it is possible to assume that essential changes in its development in 2010 will not be. Therefore the choice of the optimum period for rent or delivery of the apartment will depend in a greater degree on seasonal prevalence. So to rent apartment is more expedient at the very beginning of peak of activity of the market of rent, in February, or in August when the offer starts to replenish actively, and the prices have not time to raise essentially yet. To hand over apartment it is desirable just during the periods of peak of demand – in March-April and September-October.