From January to June 2021, the number of suburban real estate transactions in the Saint Petersburg area, considering high class cottages only, increased by 36% compared to the same period of the previous year.
Moving to home offices during the pandemic and maintaining this mode even after restrictions are lifted speaks in favor of a suburban lifestyle. In a situation where one doesn’t need to visit the office every day, suburban real estate looks more attractive than an apartment in the city.
The current conditions encourage buyers to be more selective in choosing such suburban properties in locations with more developed infrastructure. Therefore, the demand is rising while the declining volume of liquid supply acts as a deterrent.
The volume of supply in the primary market in the area declines since 2020, although some new projects are still entering the market. In the period under review, the volume of supply in the primary market decreased by 16% in class A, to 239 lots only, and by 3% in class B, to 367 lots for sale. A total supply is down by 9% 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.