During the past year, housing prices went up 15%.
St. Petersburg is one of the world’s Top 10 cities with the highest pace of housing prices growth. According to Knight Frank, during the past 12 months prices for apartments in St. Petersburg increased by 15%, while in Moscow the growth rate was just 3%.
The city where prices for dwelling grew the most, by 25% year-on-year, was Xian in China. Budapest demonstrated almost as much growth.
Interestingly, a year ago St. Petersburg was only the 82nd in Knight Frank’s rating, and Moscow was the 135th.
Experts believe that one of the reasons is the abolition of owners’ co-financing construction projects and introduction of escrow accounts. Another reason could be the higher demand for elite property after Russia’s gas monopolist Gazprom moved to St. Petersburg.
Katerina Soboleva, Vice President of Becar Asset Management, explains that in Moscow mass housing construction has been a long history, and prices have reached their maximum. In St. Petersburg, the situation is different, property there was undervalued by investors. And now that Gazprom and many other businesses have move to St. Petersburg, the market has got an impulse to grow.
According to the Developers’ Single Resource, this August apartments cost 102 thousand rubles ($1,587) per square meter on the average in St. Petersburg and almost 159 thousand rubles ($2,473) per square meter in Moscow.
Photo: St. Petersburg TV channel