Element assessed the return on investment for apartments

Developer Element and MOSS Hospitality presented a study on the profitability of premium serviced apartments. A briefing for journalists from business and industry media outlets was held at the construction site of the “17/33” complex in St. Petersburg.

Based on the study’s findings, experts identified two main sources of income for owners: rental income and appreciation of the asset’s value. With a yield of 5–7% per year, the payback period based solely on rental income is approximately 14–20 years. At the same time, over the past 5 years, prices for new luxury real estate have risen by 125% in Moscow and 107% in St. Petersburg.

In the ELEMENT and MOSS Hospitality model, each partner is responsible for its own part of the product. ELEMENT creates the asset itself: it selects the location and designs the architecture, product, and infrastructure. MOSS handles the operational side, including rates, occupancy, sales, and service, transforming the apartments into a functioning hotel business.

For the owner, the relationship with the brand continues even after the purchase. The exclusive “Element First” club brings together services, partner perks, travel, and cultural and business events. Thus, the value of real estate in the ELEMENT model stems not only from financial returns but also from the experience the owner receives.

The study also analyzed 21 Russian and international serviced apartment projects, including VALO, Docklands, YE’S, Vertical Boutique, Staycity/Wilde, and Marriott Executive.

Whitewill’s portfolio includes several of the developer’s projects currently under construction in Moscow:

“NOVAYA, 11” — an intimate project on the banks of the Yauza River with 139 apartments. During the day, it’s a pleasant place to work in a coworking space with a meeting room while your child plays at the kids’ club, and in the evening, you can meet up with friends in the event hall or relax in the courtyard garden. The grand lobby features a lounge area, a biofireplace, and a reception desk, and there is a separate room designated for strollers, scooters, and bicycles.

“Tessinsky, 5” comprises four intimate buildings within the Garden Ring. Take a morning walk to the Yauza River, visit Zaryadye Park, or head into the city center to run errands, and in the evening, return to the courtyard with its mandarin orange grove. The development will feature a restaurant with a summer terrace, a wine bar, a personal tailor shop, and a state-of-the-art parking facility. It’s a 15-minute walk to Chistye Prudy from here, and you can drive to the Kremlin in 5 minutes.