St. Petersburg, April 18, 2014. The banking crisis in late 2013, threats of mortgage credits terms tightening and the Russian Ruble weakening became catalysts for the significant growth (up to 35%) of Business and Comfort + residential real estate under construction sales volume.
Amid the rising demand, the customer requirements for quality of projects have also increased. This has changed the demand in general: the interest has shifted from the historical city center to the other locations where newly high-end projects are being implemented. Thus, the major sales volume increase was observed in the northern part of Moskovskiy Prospekt and the central part of Vasilievskiy island in Q1 2014. New high-quality projects on the Neva River in Primorskiy district and Ohta (Sverdlovskaya Embankment) enabled customers to re-evaluate benefits of these locations. With the sales volume increase by 20 - 35%, these areas became best sellers.
The sales volume also increased in the eastern part of Central district, close to Vosstaniya Square. Complex housing estate tends to be in demand, reflecting the growing interest in environment homogeneity and comprehensive infrastructure. The sales growth in this location amounted to 25-30%.
The areas considered prestigious and highly liquid (Kamennoostrovskiy Prospekt, Sportivnaya metro station, historical city center) showed the demand growth only at the expense of new Business Class projects which amounts to no more than 15%.
Elisaveta Conway, Residential Department Director, Colliers International in St. Petersburg:
“The real estate under construction remains the most transparent tool for investments saving. Generally, the difference in price of apartments in the initial stages of construction and after putting into operation can reach 30%. In the long term, 5-7 years, the price of square meter also shows a steady growth despite perturbations in the economy and a temporary drop in prices. According to our estimates, in Q1 2014 the sales figures accumulated pent-up demand of preceding periods as well as anticipatory demand of posterior ones. During the summer, the demand will be concentrated on apartments on the waterfront. Until the end of the year the demand for Business and Comfort Class projects in the central locations can grow by 10-15%.”