Apartment market H1 2021

Offer

According to analysts of Maris| Part of the CBRE Affiliate Network, as of July 2021 number of commissioned apartment complexes in St.Petersburg and Leningrad region totals to 55 projects for 20, 399 units, which is 1,079,366 sqm.

In total, 7 apartment complexes were put into operation during H1. The market was replenished with 1,272 units.

Apartment complexes introduced in St.Petersburg, H1 2021

Comfort class apartments occupy the largest share in the market structure (existing and under construction projects). Compared to business class and elite class they are more extensive in terms of the number of apartments. The leader among urban areas is Moskovsky district. The largest number of apartments has been commissioned and is being built there.

As of the end of H1 2021, apartment complexes for more than 18,530 units (almost 640 ths. sqm) are under construction. By the end of 2021 it is planned to put into operation 6,163 units in 14 complexes. However, with a high degree of probability, the deadlines for the commissioning of some projects will be postponed to 2022.

Largest objects planned to open in 2021 - «Start», BW Zoom Hotel, Adagio Access, AVENUE on Muzhestva street, Docklands Smart.

Main competitor of apartments in the current conditions is the hotel real estate market. And with the growth in the number of service apartments, this competition is only getting escalate. This way, by 2022 the number of serviced apartments will account to almost a third of the accommodation in St. Petersburg.

Demand

The main demand is focused on service apartments. Today, apartments attract part of the demand from hotels and flats rented from private individuals. Studios and one–room apartments are traditionally in the greatest demand, multi-room apartments (4 or more) are the least.

In January-June 2021, 2,444 apartments were sold in St. Petersburg, which is 13.8% more compared to the same period in 2020, when 2,148 were sold.

Top 5 projects in apartment sales for H1 2021 – Start, Pro.Molodost, VALO, In2It, Salut. Start – about 668 units.

Main competitor of apartments in the current conditions is hotel real estate market. And with the growth in the number of service apartments this competition is only getting escalate. In July, almost 6,000 units in 40 complexes were under implementation. In H1 eleven projects started sales and f 1,993 units entered the market.

Price dynamics

Prices for apartments in the medium term will depend on the final wording in the federal law regarding the legal status of apartments, the adoption of which is likely to happen in September 2021.

Growth of the average price for Q2 got +17.9% (relative to Q1 of current year). By Q2 the price increase may be about 7%-10% per quater, it depends on the economic and epidemiological situation in the country and region.