From January to June 2022, the number of suburban real estate transactions in the Saint Petersburg area, considering high class cottages only, decreased by 55% to the same period of the previous year.
Experts note that demand in 2020–2021 was largely shaped by hype against the background of the pandemic, so its decline in 2022 was expected. In pre-pandemic 2019, a comparable number of lots were sold in the first half of the year.
The current situation has a greater impact on the construction of business-class cottage settlements, where the price of lots rises and the supply reaches the stage of price-quality mismatch, which affects their liquidity.
In the period under review, the volume of supply in the market increased by 11% in class A, to 266 lots only, and by 28% in class B, to 470 lots for sale. A total supply is up by 22% year-over-year.
The number of households becoming owners of new high class houses in the suburban area of Saint Petersburg is one of the key factors shaping the demand for premium and high-end furniture (including outdoor) in the medium term.
We are tracking this indicator more closely within our extended Market Reports.