How much you can earn from commercial property in Moscow

Commercial property remains one of the most profitable areas for investment in 2025. Russia’s capital attracts investors with high yields, a wide range of properties and stable rental demand. At the same time, it is important to take into account that the market is dynamic and subject to the influence of various economic factors, so it is necessary to carefully analyse each object.

To understand how much you can earn from commercial property in Moscow, it is worth considering the key market segments, the level of profitability and payback periods. Let’s look at all this in the article.

Income from commercial property in Moscow: how much you can earn and what affects profit

Profitability of business objects depends on several factors: location, type of premises, condition, level of demand in a particular segment. On average, the profitability is 6-12% per annum. The final figures depend on the category of the object: office premises, retail space, warehouses or hotels have different levels of payback and risks.

Investments in commercial property in Moscow:

1. Rental income – receiving steady monthly payments.
2. Resale – purchase of an object at a low price with subsequent realisation at a higher price.

Some segments require a substantial investment but offer high returns, while others offer a quick return on investment due to lower start-up costs.

Payback period of real estate: which objects bring profit faster

When calculating how much you can earn from commercial property in Moscow, the payback period plays an important role. On average, it is 8-15 years, but it can vary depending on the market segment:

1. Warehouses are one of the fastest payback options: – 7-10 years, yield – 8-12% per annum. Demand is stable due to the growth of online trade and logistics.
2. Shopping centres – the average term is 10-15 years. Profit is 6-10% per annum, but a stable flow of tenants makes this sector reliable for investors.
3. Hotels are a promising but high-risk segment. The payback period is 12-18 years, yield 7-12% depending on room occupancy.
4. Co-working spaces are an increasingly popular format. The payback period is 5-8 years, but high competition requires competent marketing and choice of location.
5. Apartments – investment return period of 8-12 years, profit – 6-9%. The objects are in demand among tenants, but have nuances in taxation.

Risks of property investment: what to consider

When considering how much you can earn from commercial property in Moscow, it is important to take into account the potential risks which may affect the profitability of the object. Despite attractive profitability indicators, not every investment in business premises guarantees a stable profit.

One of the key factors is the variability of demand. During periods of economic instability, tenants, especially small and medium-sized businesses, may leave office centres, resulting in downtime and reduced profitability. This is especially true for retail space, where turnover is higher than in the warehouse or hotel segment.

Competition in the capital’s market remains high, which requires careful analysis before buying an object. There are a significant number of business centres and retail premises in the city centre, so the choice of premises in a location with a high saturation of analogues may lead to difficulties in finding tenants. Districts with active infrastructure development, where demand is gradually growing, are becoming more promising.

Additional repair and maintenance costs are also a factor affecting the bottom line. Unlike residential property, commercial properties require regular renovation, especially if tenants change with varying frequency. The cost of modernising communications, exterior design and adapting premises to new business models can amount to 5-15% of the property’s value per annum, which reduces net profitability.

Market regulation also plays a role. Changes in legislation relating to taxation of investment premises, safety and environmental requirements can affect overall profitability. Tax adjustments related to rental property are possible in 2025, requiring investors to be flexible and constantly monitor legal changes.

Market prospects: how much you can earn from commercial property in Moscow in 2025

In 2025, significant changes are expected in the demand dynamics and distribution of the most profitable segments. One of the main trends will remain the development of warehousing facilities. The growth of online trade and logistics companies will stimulate demand for complexes near major transport hubs. Rental rates for such facilities will continue to grow, while yields will reach 8-12% per annum with a relatively short payback period of 7-10 years.

Office real estate shows stabilisation. While in previous years remote working reduced demand for traditional business spaces, now companies are gradually returning to hybrid formats. This contributes to increased utilisation of business centres, but high competition among landlords leads to the need to offer flexible terms and quality infrastructure solutions. The sector yields, on average, 6-9% per annum, and payback periods can vary from 10 to 15 years.

The retail sector is undergoing a transformation. Due to changing consumer habits and the growth of online sales, traditional centres are losing popularity. The concept of lifestyle malls, where shops, leisure and entertainment areas are combined, is becoming more and more in demand. Successful projects in this segment can yield up to 10% per annum, but require competent management and marketing strategy.

The hotel business is showing strong growth due to the increasing tourist flow to Moscow. In 2025, the demand for short-term rentals and hotel services continues to go up, and the sector’s profitability reaches 7-12%. For a successful investment, it is important to consider the location of the hotel, its category and the competitive environment.

Conclusion

It is difficult to answer unequivocally the question of how much you can earn from commercial property in Moscow. This is a promising source of passive income in 2025, which, with a competent approach, can bring 6-12% per annum. The choice between warehouses, shopping centres, hotels or co-working spaces depends on the investor’s strategy and his willingness to take risks.