What real estate to buy for investments in 2025: strategies, formats, and actual profitability

The real estate sector is once again in the spotlight. A combination of factors, such as global economic instability and a growing interest in capital protection, make 2024 a particularly important year for investors. However, real estate investment strategies are changing in response to economic conditions. To be successful, it is important to understand what works today. In this post, we analyze current methods to help you make the right decision.

Modern Real Estate Investment Strategies for 2024

Real estate investment in 2024 offers many exciting opportunities for those who want to take advantage of market changes. Understanding the key trends and effective techniques can help you maximize your profits and minimize your risk. Below are some key techniques that will help you stay ahead of the curve in the ever-changing world of residential and commercial real estate.

Short-term rentals and Airbnb

Short-term rentals via platforms like Airbnb continue to attract investors, especially in cities with high tourism. The post-pandemic tourism boom is back in full force and the destination is now a lucrative tool for generating high revenue. For example, renting an apartment for one or two weeks can generate three times more income than renting it for a longer period, especially if the property is located in an area with developed infrastructure and transportation facilities. It is worth considering the risks involved: high operating costs, the need for constant maintenance of the property, and possible legal restrictions that can reduce the attractiveness of short-term rental.

Investment in new buildings

Investing in new buildings and working with project developers is one of the most popular real estate investment strategies among Russian investors. When buying an apartment during the excavation phase, you have the opportunity to acquire a space at a price 20-30% lower than the market value after the transaction. This is an important feature that allows you to increase the return on your investment. It is important to choose reliable developers who minimize the risk of delays in construction. To achieve this goal, attention should be paid to the reputation and financial stability of the developer. These types of investments are usually recouped after two to three years of operation, especially in large cities where demand for new buildings is consistently high.

Commercial real estate and office space

Commercial real estate is another attractive option for investors, especially given the active recovery of the office market. Despite the growing popularity of remote working, demand for office space has stabilized. Long-term tenants from large companies guarantee stable cash flow and minimal risk. Investments in office buildings located in shopping areas are particularly attractive. This trend requires large capital investments at the beginning, which is not suitable for everyone.

Benefits and risks of real estate investment strategies

Real estate has long been considered one of the most reliable investments that protect your capital from inflation. The biggest advantage is that its value can be maintained even in times of economic instability. Investing in real estate offers the opportunity to generate a regular income through rental of real estate and at the same time protect your capital from loss of value. There is also the possibility of taking advantage of tax benefits: income tax refund when purchasing an apartment.

Risks and how to reduce them

Investing in real estate is not without risk, regardless of the strategy followed. The most important of these are the revaluation of real estate values, the difficulty of finding tenants and possible changes in legislation. In order to minimize potential losses, it is essential to carefully analyze the market, choose reliable properties and work with experienced real estate agents. It is important to look not only at the current condition of the property, but also at the possibilities of the neighborhood in which it is located. For example, infrastructure projects currently underway can significantly increase the value of real estate in the future.

The impact of economic factors on real estate prices

The cost per square meter is influenced by many factors: inflation, mortgage interest rates and the general economic situation of the country. Experts expect a moderate increase in costs until 2024, especially in regions with developing economies. It is important to know that changes in taxes or government support for housing have a direct impact on the attractiveness of investments. For example, by abolishing a preferential mortgage, the demand for housing can decrease and thus also its price.

How to choose a real estate investment strategy?

Before investing your capital, it is important to clearly define your objectives. Do you plan to generate passive income through rental or do you want to sell the property quickly if its value increases? For long-term investments, it makes sense to buy commercial properties or apartments to rent out. For short-term purposes, it is beneficial to invest in new buildings with the potential for resale.

Risk assessment and market analysis

A careful market analysis is necessary to choose the right investment. It is important to look not only at current prices, but also at macroeconomic factors such as unemployment rate, personal income and changes in legislation. It is also worth paying attention to infrastructure projects that can increase the attractiveness of the region.

A practical list of steps for choosing a strategy:

1. Market analysis: study current trends and assess supply and demand in relevant areas.
2. Choose the type of property: determine whether it should be a residential property, a commercial property or a new construction project.
3. Capital valuation: budget calculation, taking into account purchase, repair and maintenance costs.
4. Document check: make sure that all property documents are in order and that there are no attachments.
5. Rent or resell: choose your monetization strategy: rent for passive income or resell for profit.

Conclusion

Real estate investment strategies in 2024 are diverse and offer many opportunities for generating income. Short-term rentals, investments in new buildings and commercial spaces: all these approaches can be successful if they are properly analyzed and planned. Success depends on understanding the current economic conditions and choosing the right real estate to invest in. It is time to study the market and try to invest to achieve financial freedom and stability.

Earning money by renting out apartments in Russia remains a stable tool for creating a steady cash flow. In conditions of inflation and instability in the stock markets, rental of residential real estate continues to attract investors seeking regular income without active asset management. The rental market is developing, rates are being updated, regions are competing, and the demand for housing remains consistently high — especially in large cities and tourist areas.

How to choose real estate for rent: decision-making factors

The choice of property determines the future profitability of renting housing and the payback period. Priority is always given to apartments in areas with developed infrastructure, good transport accessibility, and high population density. New buildings within walking distance of the metro usually find tenants faster and require less investment in repairs. The condition of the building, the management company, as well as the layout of the apartment and the availability of furniture become important criteria.

Properties on the secondary market are cheaper, but often require additional expenses for repairs. Apartments and townhouses are also rented out, but depending on the region, demand may be limited. Against the backdrop of rising housing prices in Moscow, interest in renting is shifting more towards the Moscow region and major regional centers.

Key advantages and risks of renting out housing

Investors choosing to earn money by renting out apartments in Russia focus on the reliability, predictability, and real material value of the property. Renting out residential property provides passive income from real estate without the need for deep involvement in business processes. However, there are nuances that need to be taken into account in advance. Before investing in an apartment for rent, it is worth analyzing the following factors:

• level and stability of rental rates in a specific region;
• likelihood of vacancies between tenant changes;
• need for periodic repairs and maintenance;
• legal risks associated with tenants;
• structure and amount of taxation.

A thorough analysis allows predicting potential problems in advance and minimizing the risks of long-term losses.

How to rent out an apartment: step-by-step algorithm

Before starting rental activities, it is important to properly prepare the property: from the condition of the repairs to equipping it with household appliances. The appearance and functionality determine the attractiveness of the apartment in the market and affect demand. This approach becomes the basis for a successful start, especially if the goal is to ensure a stable income from renting out apartments in Russia with minimal vacancies and high occupancy. To simplify the start, the following algorithm should be used:

• bring the apartment to a proper condition;
• perform cosmetic or major repairs;
• equip the property with necessary appliances and furniture;
• analyze the market and determine an adequate rental rate;
• create an attractive listing with photos and detailed description;
• conduct tenant screening and sign a contract.

Step-by-step actions contribute to quick rentals, reduce the likelihood of conflicts, and increase the duration of rentals. It is important to strike a balance between investments in rental property and expected profits.

Profitability and payback period in Russia: earning money by renting out apartments

The payback of a rented apartment depends on the region, the cost of the property, and the average rental rate. In Moscow and St. Petersburg, the payback period can reach 17–20 years, while in cities like Tyumen, Ufa, or Krasnodar, it often does not exceed 10–12 years.

In practice, the rental yield of housing in Moscow rarely exceeds 8% per annum. All costs are taken into account: repairs, taxes, vacancies, maintenance expenses. High rates for short-term rentals may seem attractive, but they require active management and are associated with risks of property damage.

Regular income can be ensured with consistently occupied premises, reliable tenants, and a well-structured financial model. With a smart approach, earning money by renting out apartments in Russia can indeed become a source of predictable profit.

Regional differences: where is it more profitable to rent out?

The rental market in different parts of the country is characterized by heterogeneous dynamics. In large metropolises, apartments near the metro or close to business centers enjoy stable demand. In tourist regions, short-term rentals are popular, especially in the summer period.

On the periphery, on the contrary, housing often remains vacant, especially if the area is not conveniently located. Examples of profitable directions include Moscow and the Moscow region, Kazan, St. Petersburg, Sochi, Kaliningrad, Anapa, Yekaterinburg, Novosibirsk, and Krasnodar.

In all cases, factors such as purchase cost, infrastructure, job availability, student activity, attractiveness of residential complexes, and development format are taken into account when choosing a property. These factors directly affect the ability to earn money by renting out housing, as they determine the level of demand, occupancy speed, and potential profitability.

Types of rentals and who they are suitable for

Renting can be short-term, long-term, and daily. Long-term rentals are characterized by stability and minimal risks. Daily rentals require active management but offer higher margins. Seasonality also plays a role: demand decreases in winter and increases in summer, especially in southern regions. This approach is directly related to how earning money by renting out apartments in Russia is structured, where the choice of strategy depends on location, property type, and owner’s goals.

The choice depends on the investor’s goals: some aim for maximum capital turnover, while others seek calm passive income from real estate.

How to formalize rental officially: legal aspects

Officially renting out housing implies signing a contract and paying taxes. The property owner has the right to choose the tax regime: the standard rate of 13% or a patent for individual entrepreneurs. With regular rental of several properties, it is more advantageous to register as an individual entrepreneur and use a simplified tax system.

The tax base is formed from the sum of rental income, not the market value. With proper filing of tax returns and tax accounting, the tax burden does not become critical. It is also important to follow the rules for registering a lease agreement for terms exceeding 12 months.

Conclusion

Earning money by renting out apartments in Russia builds a solid financial foundation provided careful preparation, analysis, and compliance with legal norms. Choosing a property, calculating payback, screening tenants, and maintaining tax records are key elements that determine the effectiveness of investments. By following all stages, the owner not only receives monthly income but also gains confidence in the preservation of capital for years to come.