Lease Discussion Essential Before Contract Agreement: Insights from Natalia Averyanova
In a bid to address the soaring housing prices and expensive mortgages in Russia, the Federation Council has proposed a tax deduction for renting housing. However, as of mid-2025, there is no publicly available evidence or official information indicating that Russia has implemented this proposed tax deduction specifically for renting housing.
The real estate market in Russia is currently facing challenges with high prices, reduced construction, and rising rents, which are increasing housing insecurity. For instance, in the Stavropol region, housing prices have sharply increased from about 19,000 rubles per square meter in 2013 to 130,000 rubles today, with premium units even higher. Construction activity has also dropped significantly, partly due to high interest rates.
The proposed tax deduction for renting housing is intended to make housing more affordable for a wider range of individuals and support those who cannot afford to buy property. If enacted, the tax deduction would be capped at 70,000 rubles or the regional threshold. It is also aimed at those struggling with expensive mortgages.
The tax deduction is not limited to individuals struggling with high prices or expensive mortgages. To qualify for the deduction, tenants must have temporary registration in the apartment and the housing for which the deduction is proposed must be the tenant's only residence.
The tax deduction is proposed to prevent fraud. It is worth noting that similar tax deductions for renting housing have been in place in some municipalities in the Krasnodar region, although their impact on the real estate market is not fully understood.
The "Details" program recently discussed new trends in housing rentals, with guests such as Yulia Medvedeva, a mortgage and real estate expert, and Natalia Averyanova, the owner of a real estate agency, sharing their insights. Alexander Kugushev, a lawyer and mediator, was also a guest on the program.
Despite the proposed tax deduction, no detailed policies supporting young families through rental tax benefits are reported. If you are interested in recent Russian housing market policies or potential support measures, more direct inquiries to Russian government resources or recent legislative updates would be necessary to confirm any new proposals after mid-2025.
Investing in real estate has become a daunting task for many in Russia due to the escalating housing prices and interest rates, making renting a more viable option. However, the proposed tax deduction for renting housing, currently under debate, is meant to make housing more affordable for individuals and support those struggling with expensive mortgages and high finance costs.
