Investing in apartments and flats: what is better to invest in?

In the world of real estate investments, there is an eternal debate: a classic flat or a trendy flat? At first glance, a flat seems like a reliable, time-tested asset. But if you dig deeper and look at the real profitability and prospects, flats increasingly come out on top as a more profitable instrument for investing capital.

"The main advantage of flats is the entry price. This is an undeniable advantage. All other things being equal (location, quality of construction, footage), flats are 20-40% cheaper than similar flats in the same area. Why? The absence of developer costs for creating social infrastructure (kindergartens, schools) and the lower cost of land for commercial development directly affect the final price. For an investor, this means the opportunity to purchase a larger footage or a property in a more prestigious location for the same money. This difference in price is the foundation for a higher potential profitability," Arik Shabanov, a real estate investment expert and PhD in law, explained to Rossiyskaya Gazeta.

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This advantage is clearly demonstrated by the offers appearing on the market. For example, you can buy a three-room apartment in a completed comfort-class complex for 7.5 - 8 million rubles, with a square meter price of about 120-140 thousand rubles. Moreover, these are not cheap panel solutions, but modern monolithic buildings. "Such a price tag for a similar footage for classic apartments in the capital region already seems unattainable," the expert says.

Rental income is a key factor for an investor, and here apartments are breaking records. Their specificity is location in business centers, near transport hubs, in areas of increased tourist and business activity. These are exactly the places where the demand for high-quality temporary housing is maximum. Apartment renters - business travelers, expats, project specialists, tourists - are willing to pay more for convenience, service (often the complex has a management company, concierge, cleaning) and a prestigious location. The average yield from renting apartments in liquid locations is higher than that of apartments in neighboring residential areas. This difference, combined with a lower purchase price, gives a significant difference in absolute figures for return on investment.

Modern format and service are another argument. Apartment complexes are designed with comfortable rent in mind: well-thought-out layouts, high-quality turnkey finishing, developed infrastructure of the complex itself (fitness, cafes, coworking spaces, parking). "These are mini-hotels, but with a feeling of "home". Such a product attracts more solvent and demanding tenants who value their time and comfort, which directly affects the stability of the rental flow and the minimization of downtime. Management companies of such complexes often offer professional services for the delivery and maintenance of properties, which saves the investor's time and nerves," Arik Shabanov clarifies.

The prospects for capitalization growth are also encouraging. The apartment market, especially in large cities with a population of over a million, is actively developing and structuring. The stigma of "lack of rights" is gradually being erased, investors are increasingly evaluating the economic benefits. The demand for quality apartments in good locations is growing, especially from corporate clients and apart-hotel services. This creates a stable basis for the gradual growth of the market value of such properties in the long term.

"But there are nuances. Legal status (non-residential premises), lack of permanent registration (residence permit), potentially higher utility bills and property tax (as for commercial real estate) are factors that must be taken into account. However, for a target investor focused on income, rather than personal residence or receiving social benefits, these disadvantages are outweighed by economic advantages: a significantly lower purchase price and noticeably higher rental yields," the expert states.

Published: https://rg.ru/2025/07/01/apartamenty-ili-kvartiry-vo-chto-luchshe-investirovat.html