The secondary market of St. Petersburg has risen in price by 76% since 2019, new buildings — by 104%
Prices for new buildings grew faster than secondary housing due to preferential mortgage programs that stimulated demand. With the end of these programs, developers will compensate for the decrease with bonuses and installments to maintain interest.
The average price per 1 sq. m. in the secondary real estate market of St. Petersburg at the end of June 2024 amounted to 210.8 thousand rubles. Over the year — from June 2023 — the price per 1 sq. m. in the secondary market increased by 9.4% or by 18.1 thousand rubles.
At the same time, for the period from June 2019 to June 2024, the average price per 1 sq. m. in the secondary real estate market increased by 75.9% or by 90.9 thousand rubles.
At the primary market, the average price for the year — from June 2023 to June 2024 — increased by 17.4% or by 39.8 thousand rubles. Today the average price per 1 sq. m. in the primary market is 268.6 thousand rubles.
At the primary market, the average price of a square meter from June 2019 to June 2024 increased by more than 2 times, by 104%. In absolute terms, the increase in the average price amounted to 137.4 thousand rubles.
Alla Shinkevich, CEO of the Nevsky Prostor Real Estate Agency:
— The main driver of this growth was preferential mortgage programs, such as family mortgages and mortgages with state support. These programs offered low interest rates, which made the purchase of new buildings more affordable for a wide range of buyers. Naturally, increased demand has led to an increase in prices in the primary real estate market.
However, it is worth noting that the price growth for new buildings began to slow down even before the completion of preferential programs, around April-May. Now we are seeing a slight decrease in prices, but this does not mean that this trend will continue for a long time. Developers are actively looking for ways to keep buyers interested by offering various bonuses, installments and gifts. For example, interest-free installments can be a powerful incentive for potential buyers, which will help maintain price stability.
Undulating movements always characterize the real estate market. After a period of active growth, a stage of stagnation or even a slight decrease inevitably occurs. Nevertheless, in the long term, prices for new buildings continue to rise. Even if we see a 2-5% decrease in prices in the near future, the overall dynamics will remain positive throughout the year. For example, if prices for new buildings increased by 17% over the year, then even with a slight decrease they will still show an overall increase.
It is also important to take into account that real estate always remains an attractive object for investment. Despite the current price fluctuations, new buildings offer many opportunities to earn money. This may be income from further resale or rental. Objects with good characteristics and convenient location are especially interesting. In some cases, you can find great deals, such as an urgent sale or objects from auctions at a reduced price. Apartments in popular areas also remain in demand, especially if the complex has a management company that rents them.
Source: https://www.bsn.ru/
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