Contents:
- What are tenement houses and why are they popular?
- The history of tenement houses: how they changed the appearance of European cities
- The structure and features of tenement houses
- Who could become a homeowner?
- Historical prices for apartments at the beginning of the 20th century
- The role of influencers and communities in renting apartments

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Learn moreWhat are apartment buildings and why are they popular?
Apartment buildings, or investment properties, are buildings intended for rental. In modern conditions, such properties are becoming increasingly attractive to investors. In Russia, as in most European countries, there is a growing demand for rental housing. According to analysts, the average rental yield in large Russian cities ranges from 8% to 15%, which is significantly higher than in Western European capitals, where yields often do not exceed 5%. Investing in apartment buildings in Russia can be a profitable strategy, given the stable demand for housing and rising rental rates.
The history of apartment buildings: how they changed the appearance of European cities
The history of apartment buildings dates back to Ancient Rome, where there were insulae, which were multi-apartment buildings for tenants. However, the real boom in tenement buildings occurred in the 19th and early 20th centuries, when Europe was undergoing the Industrial Revolution. During this period, urbanization and population growth fueled the construction of new residential complexes, making tenement buildings a popular choice for investors seeking stable rental income. These buildings became an integral part of urban architecture, providing housing for workers and their families and contributing to urban development.
During this period, millions of people left their villages in search of work in new factories, creating a high demand for housing. Business owners sought effective ways to invest their capital. Tenement buildings became an optimal solution, meeting the needs of both workers and entrepreneurs. In St. Petersburg, for example, in the 19th century, 80% of new buildings were precisely such residential complexes, demonstrating the importance of this type of real estate in the urban environment of that time.
The mass construction of tenement buildings significantly changed the urban structure of many European cities. In Vienna, for example, the Ring was created, surrounded by magnificent apartment buildings that replaced the old fortress walls and became a symbol of a new architectural style. In Barcelona, the Eixample district emerged, designed with an emphasis on symmetry and rational planning, which contributed to the efficient use of space and improved urban infrastructure. In St. Petersburg, in an effort to optimize land use, apartment buildings were built in close proximity to one another, resulting in the formation of characteristic courtyards that became an integral part of the city's architectural appearance. These changes in urban planning not only influenced the appearance of cities but also changed the lifestyles of their residents.
The Structure and Features of Tenement Houses
Tenement houses are distinguished in urban architecture by their scale, often exceeding the size of classical mansions. Typically, such buildings have four to five floors and are easily recognizable by the characteristic features they impart to city streets. A striking example is the Nirnzee House, built at the beginning of the 20th century. This architectural object became a symbol of height, since until 1931 it remained the tallest building in Moscow, impressing its contemporaries. Such buildings not only shape the urban landscape, but also reflect the historical and cultural aspects of their time.
The architectural solutions of tenement houses are inextricably linked with their economic purpose. The ground floors of such buildings often housed shops, which necessitated the presence of large windows overlooking the street. Business owners, as a rule, lived close by, which allowed them to effectively manage their enterprises. This architectural concept promoted the creation of a comfortable and functional space where residential and commercial areas coexisted harmoniously. The second floor housed residents with a middle income, while the third floor was considered more prestigious. It housed spacious apartments, ranging from seven to fifteen rooms, which were advertised as "lordly." Architectural elements such as stucco and mosaics were often concentrated on this level, emphasizing the high status of the residents. Interesting fact: owners of apartment buildings seeking to stand out often chose apartments on the third floor, while more practical homeowners preferred to settle on the upper floors, where less luxurious but more affordable housing options were located.

Tension buildings followed the logic that "the higher, the cheaper." This is explained by the fact that elevators were rare in such buildings. The first elevator in a residential building in Russia appeared only in 1890 in St. Petersburg, and even in the mid-20th century, their presence did not become standard. As a result, the upper floors were not perceived as luxurious, and it was there that students and artists on a limited budget often lived. This approach to accommodating residents created a unique atmosphere that fostered creative interaction and cultural exchange among residents.
The main architectural features of tenement buildings include multi-story buildings, wide storefronts on the ground floors, and a variety of decorative elements, especially on the upper floors. These buildings were typical of the urban environment and served not only residential needs but also commercial ones. The first apartment buildings in Russia began to be built in the 19th century, which was associated with economic changes and urban growth. These buildings became a symbol of the new era, reflecting changes in social structure and architectural preferences.
Who could become a homeowner?
At the beginning of the 20th century in Russia, private individuals played the main role in the ownership of apartment buildings. In St. Petersburg, for example, private owners owned 88% of all rented apartments. These were, as a rule, wealthy citizens, such as factory and shop owners, although not necessarily oligarchs. A striking example is L. A. Engelbrecht, a high school teacher, who became the owner of an eclectic-style apartment building on Novokuznetskaya Street in Moscow. This period became an important milestone in the history of Russian real estate and the economy, when private property actively developed and played a key role in shaping the appearance of the city.
Tension buildings in Moscow could be owned not only by individuals but also by organizations. For example, on Sretensky Boulevard, there was a tenement building with a clock, which belonged to the insurance company "Russia". In addition, some buildings were owned by government agencies, educational institutions, and charities. This emphasizes the diversity of owners of such properties and their important role in the architectural and social life of the city.
In Moscow and St. Petersburg, there is a practice of registering real estate in the names of women, which is associated with the "ancient Russian tradition of economic security". An example of this practice is the house built by the famous railroad magnate Pyotr Pertsov, which formally belonged to his wife Zinaida. This tradition continues today, emphasizing the importance of asset protection and financial stability in family relationships. Registering real estate in a spouse's name helps avoid potential risks and ensure asset protection in the event of unforeseen circumstances. Future homeowners often formed partnerships to jointly build apartment buildings. However, this market segment remained relatively small. Those wishing to become property owners most often sought financing from banks, which quickly recognized the potential of urban development. With growing interest in real estate investment, banks began offering a more diverse range of lending products, which contributed to an increase in the number of successful residential construction projects. Financial support came not only from domestic but also from foreign banks. French bankers Armand Donon and Isaac Perrier actively invested in the real estate sector, demonstrating a growing interest in construction. Joint projects were also financed by banks from the UK, highlighting international interest in urban infrastructure development. Such cooperation contributed to the attraction of new investments and the development of the construction market in large cities.
Historical prices of apartments at the beginning of the 20th century
Housing prices at the beginning of the 20th century, as today, significantly depended on the area and class of the property. In large cities, apartments for the working class had similar characteristics and living conditions. The French writer Eugène Sue emphasizes that in one of the most densely populated parts of Paris, in disgusting and cold buildings, many people accumulated, which created terrible living conditions. These historical facts show how social and economic conditions influenced the real estate market, which remains relevant in modern realities.
At the beginning of the 20th century, rent for a small room in Moscow cost only 5 rubles per month. For comparison, a janitor earned about 18 rubles per month. These figures clearly illustrate the difficult living conditions of the working class during that period. Low wages and high housing costs highlight the social and economic challenges facing the capital's residents. Renting a "lordly" apartment, similar to the one owned by Professor Preobrazhensky in the famous novel "Heart of a Dog," cost 120-140 rubles per month. The professor's apartment had seven rooms, and he was eager to add an eighth. Such apartments, distinguished by their luxury and spaciousness, were in high demand in their time, reflecting the status and social standing of their owners.

Financial data confirms that a technical school professor earned about 250 rubles a month at the beginning of the 20th century. This amount clearly demonstrates the difference in the standard of living and availability of housing during that period. Income levels directly impacted quality of life and the ability to afford housing for different social groups.
The Role of Influencers and Communities in Apartment Rentals
During the 19th and 20th centuries, homeowners began to recognize the importance of community building and its impact on property attractiveness. Modern developers continue this trend, recognizing that being surrounded by people who share similar values creates a unique atmosphere. To achieve this goal, tenants were often selected based on their profession: teachers were located near educational institutions, and doctors were located near medical facilities. This approach not only strengthens ties between residents but also contributes to the creation of a comfortable and safe living environment. As cities develop and the social structure changes, the importance of forming a harmonious community remains relevant, making the choice of residence an important factor for a comfortable life.
In the 21st century, tenants can be considered influencers, as their presence in residential complexes significantly increases the status and value of real estate. Prominent examples include apartment buildings designed by renowned architects such as Antoni Gaudi and Fyodor Shekhtel. Apartments in such buildings are in high demand and command prices above the market average, making them attractive to investors and buyers. Rental influencers can not only enhance the image of a residential complex but also contribute to its market value. Architecture played an important role for homeowners, but infrastructure was no less significant. In one building, the ground floor housed shops, while the basement housed a famous cabaret, attracting the creative elite. Artists such as Fyodor Chaliapin and Olga Knipper-Chekhova performed there. This unique neighborhood attracted artists, writers, and musicians, creating a unique cultural atmosphere. Infrastructure elements such as shops and cultural institutions significantly enriched the life of the district and contributed to the development of art.
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