Since the beginning of the year, the launch of new housing on the market in St. Petersburg has decreased by almost 60%.

St. Petersburg developers took a wait-and-see approach – in the first quarter of 2024, 575 thousand m2 of residential real estate were put on the market, which is 59% lower than the result of the fourth quarter of 2023. In total, 14.7 thousand apartments in 21 residential projects were put on the market, four of them are new starts, the rest are the next stages of complexes already under construction. This was stated by Mikhail Gushchin, Vice President of Marketing and Product of the RBI Group.

Of the new supply, more than 50% were projects in the traditional part of St. Petersburg (territories within the boundaries of the Ring Road, with the exception of the Petrodvortsovy, Kolpinsky, Pushkinsky, Kronstadt districts of St. Petersburg and locations administratively related to the Leningrad region).

“Of course, large-scale integrated development projects continue to gravitate toward locations near the Ring Road, where there are fewer restrictions and a large land resource. However, we also see that there is an active development of promising near-central zones: the Chernaya Rechka location, the Obvodny Canal and others. It is obvious that the land and urban development potential of the areas around the city center has not been exhausted,” notes Mikhail Gushchin.

According to him, another noticeable trend in the first quarter was the limited launch of new projects for sale. In the first quarter, no more than 184 thousand m2 of real estate went on sale – this is 32% of the housing put on the market during this period.

“We see that developers have begun to “hold back” and not release part of the inventory in new projects. The reasons for market participants may be different: someone sells apartments in limited pools, testing the demand potential and consumer interest in an object or location. A number of players monitor the current cost of construction and want to immediately set an adequate market price; some companies, in principle, tend to maintain liquid inventory,” adds Mikhail Gushchin.