The number of offers on the primary elite housing market in St. Petersburg decreased over the year by 28% by area and by 33% by lot. In total, as of March 2024, there are 690 similar apartments and apartments in the city (94,000 sq. m.). During the first quarter, a decrease in the volume of those remaining on sale was recorded by 10%, writes Stroygazeta with reference to data from NF Group.
On Petrovsky Island, the share of luxury housing is 43% of the total area of apartments and apartments for sale. The Petrograd side took second place, although the number of such facilities there decreased over the year by 7%, to 30%. Krestovsky Island is in third place – 15%.
Aliya Khanbekova, head of the luxury real estate department of NF Group in St. Petersburg, notes that at the beginning of 2024, the trends established in the previous year developed. High activity of buyers led to a reduction in supply volumes to a minimum value – something like this has not been observed for a couple of years.
“At the same time, developers were in no hurry to bring new properties to the market in the first quarter, but by the end of the year they announced the start of sales in several residential complexes in locations traditional for the elite segment of St. Petersburg. “,” the expert added. “This, on the one hand, will allow us to replenish the supply in small quantities, and on the other hand, it will maintain demand at a high level.”
As Business Petersburg reports, sales of luxury apartments in St. Petersburg in the first quarter of 2024 increased 2.5 times compared to the same period in 2023. During January-March, 340 luxury apartments were purchased, 75% in installments, the rest in installments. Transactions were carried out with a mortgage or full payment. In 2023, 58% of transactions were concluded in installments.
All experts also confirm the rise in prices for luxury real estate. According to some data, for the quarter the growth was 2%, up to 645,000 rubles per square meter. And for the year an increase of 19% was recorded. According to other data, since the beginning of the year the average cost of luxury apartments has increased by 4% and at the end of March amounted to 547 thousand rubles. In the luxury segment, the growth is more noticeable – by 8.5%, to 969 thousand.
At the end of 2023, St. Petersburg rose to second place in the world in terms of the growth rate of prices for luxury housing and even overtook Dubai. These trends are projected to continue into 2024. Prices will depend on the commissioning of new projects, the key rate of the Central Bank, construction costs, inflation, as well as changes in the exchange rate and the geopolitical situation. Demand will continue to grow amid decreasing supply. Queues are already forming for the most attractive options.
International investment experts note that similar trends are observed in almost all countries of the world. The luxury real estate market is the most stable of all sectors in this area. High demand for such housing continued even during the pandemic. Revenues from luxury hotels have increased in Greece. In France, Italy, and Ireland, the average price per night increased by 30% compared to 2019. The Netherlands, Spain, Belgium, Poland and the UK recorded growth of 20%.
Analysts expect progress in holiday numbers and revenue levels at luxury hotels also in Asia-Pacific, Latin America and the Middle East. Global hotel brands are expanding their presence due to growing demand. One of the largest projects of this kind is being built in Georgia. Wyndham Hotels & Resorts is interacting in the Batumi resort area with the developer European Village, which is building an entire hotel complex.
Wyndham Grand Residences Batumi Gonio has more than a thousand rooms and about 90 infrastructure facilities. And this is the first establishment in Georgia focused on the “All Inclusive” format, which is becoming increasingly popular in the world. Wyndham’s profitability levels are traditionally high. And Georgia, in addition, leads in this indicator even with ordinary real estate.
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