Bank deposits in Russia could generate significantly higher returns in 2027 than purchasing an apartment to rent out, economist Yulia Kuznetsova told news outlet Gazeta.Ru.
Under a baseline economic scenario, average bank deposit yields are projected to reach 10 to 11 percent annually. Kuznetsova calculated that placing 10 million rubles in a one-year bank deposit would earn roughly 1 to 1.1 million rubles before taxes.
The positive real returns on savings accounts will be supported by a central bank key interest rate maintained between 10.5 and 12.5 percent, alongside expected annual inflation of around 4 percent.
In Russia, the central bank sets the key interest rate to regulate liquidity and curb inflation across the economy. When central bank interest rates remain elevated, commercial banks offer higher yields on fixed-term deposits to attract retail savings, making fixed-income accounts an appealing option for retail investors.
Comparison with rental housing returns
By contrast, buying a residential property valued at 10 million rubles generates lower direct cash returns under typical rental conditions. At a monthly rent of 55,000 rubles, the property brings in 660,000 rubles in gross annual income.
After paying taxes and accounting for potential rental downtime, property maintenance, repairs, insurance, and other operational expenses, a landlord can expect to net between 400,000 and 500,000 rubles per year.
Additional financial gains remain possible if the market value of the apartment increases over time. If housing prices rise by 4 percent, the property owner would gain approximately 400,000 rubles in unrealized profit, though this gain can only be realized upon selling the asset.
Residential real estate has long served as a traditional store of value in the Russian financial market, shielding capital from inflation. However, rental property ownership involves ongoing maintenance obligations, tenant management, property taxes, and reduced liquidity compared to direct bank deposits.
Investment horizons and mortgage market pressures
Kuznetsova stated that real estate remains better suited for long-term investments spanning five to seven years or longer. Over a short one-year investment horizon, bank deposits prove superior due to higher yields and rapid access to funds.
The comparison comes as housing accessibility faces headwinds from high borrowing costs. Earlier reporting indicated that purchasing a one-room apartment in Moscow using a market-rate mortgage requires a resident to earn about 435,000 rubles per month.
Moscow represents Russia's largest and most expensive housing market. Elevated mortgage rates mean prospective property buyers require substantial income to satisfy loan qualification standards, leading some investors to favor liquid banking instruments.
