Overestimation or seasonality?

The average cost of a land plot in 2022 was 1.1 million rubles, in 2023 - almost 1.5 million rubles. The area preferred by future buyers is 15 acres.

Overestimation or seasonality? Why has the demand for suburban real estate near St. Petersburg decreased

The number of offers for the purchase of suburban plots in the Leningrad region has increased by 11%, but there are fewer people willing to purchase this type of real estate. Demand decreased by 4.7%.

The average cost of a land plot in 2022 amounted to 1.1 million rubles, in 2023 — almost 1.5 million rubles. The area preferred by future buyers is 15 acres. At the same time, in the 47th region, a country house for a family of four with a plot of six acres can be bought for 740 thousand rubles.

Alexander Ginovker, Vice-President of the Association of Realtors of St. Petersburg and the Leningrad Region, President, founder of the Nevsky Prostor Academy of Sciences, said in an interview with NEVSKY NEWS that the increase in objects put up for sale may be due to the fact that some houses do not buy for a long time.

«"There are a lot of old-format houses for sale now, which were built more than 20 years ago. As a rule, they are highly overvalued. They haven't been sold for years or even decades. Maybe due to this, such figures. The supply is growing, and they don't just leave. Suburban real estate objects are very difficult to evaluate. Their owners tend to overstate the cost. The city market is more standard, it is clear there how much a standard apartment costs. In the country market, a lot depends on the location, the amount of land, and the quality of the house", - he comments

Alexander Ginovker, Vice-President of the Association of Realtors of St. Petersburg and Leningrad Region, President, Founder of the Nevsky Prostor Academy of Sciences

According to the expert, there will be no abrupt jumps either up or down in the near future. Alexander Ginovker recalled that due to the covid pandemic, prices for such houses were rising because many wanted to live outside the city.

"There was a certain boom in suburban real estate, both for sale and for rent. He was sleeping now," - the expert explained.

Another interlocutor of NEVSKY NEWS — Candidate of Economic Sciences, Associate Professor of the Department of Management of the Northwestern Institute of Management of the  Russian Presidential Academy of National Economy and Public Administration Alexander Rodionov suggests that the situation in the suburban market is seasonal.

"The activity of the market begins to manifest itself at the beginning of April, when the townspeople, wanted the good sunny weather, rush out of town. Prices this year, of course, will depend on the economic and political situation in the country. But, of course, seasonal growth is possible due to an increase in demand,"- the economist said.

Build or buy?

Alexander Ginovker noted that if a person has a desire to buy a plot or a house in the Leningrad region, it is better to do it — there will be no collapse in prices in the near future. He added that if a buyer wants to purchase a plot, but build a house on their own, then you need to remember that it will take a lot of time and effort.

"Both construction and purchase require monetary investments. But construction requires emotional costs. If you are not a professional builder and do not do this every day, then you will lose more nerves than money. It is very important in this case to have a normal building producer, not accidentally found, but with a lot of experience. If you are not mentally ready to do all this, then it is better to buy ready-made. Moreover, the finished product may be cheaper than building it yourself," shared Ginovker.

"If there is a plot of land in a good location and with all connected communications and taking into account the fact that prices for building materials have dropped significantly, it makes sense to do construction yourself and save money on it. If there is a desire to buy a ready—made house and use the infrastructure of a residential village, it is better to buy from a developer," - Rodionov explained.

Two tips

When buying a country house, Alexander Ginovker believes, it is always necessary to bargain, because many objects are overvalued.

"If the seller is motivated to sell the object, then most often he goes for a discount. But it's better to hire an real estate agent for this. A competent agent knows what arguments to apply, and is able to lower the price much more," - he stressed.

In addition, it is necessary to carry out a technical examination of the site and the house, but for this you need to attract competent specialists. As Ginovker noted, it is much more profitable to pay for the services of a professional than to buy a house with big disadvantages.

"It is very important to pay attention to communications in the village: to understand what you will have with electricity, gas, water and sewerage. Often we are only promised all this when they sell a plot, and then it all does not always come true. In the house it is necessary to pay attention to structural elements: how warm is the foundation, in what condition is the roof, is there mold. But it's better to inspect everything together with the builder. There can be a huge number of problems," - concluded Alexander Ginovker.

Alexander Rodionov also believes that the availability of ready—made communications is an important aspect. The lack of electricity, gas, water and sewerage can entail not only large connection costs. It may turn out that it will not be possible to lay them at all.

Text by Nadezhda Lutsenko

Source: "Nevsky News"

Sale of real estate in the Leningrad region: procedure

If you are going to buy or sell real estate in the Leningrad region, whether it is a cottage, a house or a plot, the real estate agency "Nevsky Prostor" is ready to help you.

• Call the realtors of our agency and tell us about the object that you want to sell or buy.
• Experts will enter your object into the database or pick up houses and plots that meet your requirements.
• Together with you, the agency's specialist will go out of town for a personal inspection of your property or selected objects, assess the real value on the spot, get acquainted with the documents.
• We will carefully prepare each purchase and sale transaction and secure mutual settlements between the seller and the buyer. We will speed up the paperwork process as much as possible and settle the legal formalities ourselves.

Contact us :

• Tel : +7 (812) 325-38-38 (from 9-00 to 21-00 on weekdays; from 10-00 to 18-00 on weekends and public days)

• Address: Russia, 199406, Saint Petersburg, Nalichnaya street, 22

• You can also ask questions to our specialists online