Analysts of the consulting company NF Group analyzed the development of one of the most dynamically developing locations of high-end housing in St. Petersburg – Petrovsky Island. Active redevelopment of the island began in 2015: since then, the housing market has been replenished with 12 elite and business class complexes.Since 2020, the island has maintained a leading position among premium locations in terms of the amount of space sold. By the end of 2023, the weighted average cost per square meter in new elite residential complexes reached 550 thousand rubles, while in new business class buildings it amounted to 434 thousand rubles. In nine years, the cost per square meter has increased 2.7 times for business class facilities and doubled for elite residential complexes.At the same time, the island has almost exhausted its development potential:Currently, only one project has construction permits. In the future, we can expect a reduction in the supply available for purchase on the primary market and, as a result, its price increase.
Despite the fact that the first residential complex was built on the island in the early 2000s, active replenishment of the housing market began in 2015, when two business class facilities were put on sale at once – Ostrov and Petrovskaya Riviera. In 2016, the offer was supplemented by an elite-class facility – RoyalPark.
At the end of 2015, the total area of lots for sale on the primary housing market of Petrovsky Island amounted to 45 thousand square meters. After that, against the background of growing interest of developers in the location, the volume of supply increased annually, reaching a maximum of 107 thousand square meters in 2022. In 2023, as a result of the restoration of consumer demand and a decrease in development activity due to the exhaustion of the island’s land bank, a decrease in the number of lots in the exposition was recorded.By the end of 2023, the volume of housing supply on the island has decreased to 81 thousand square meters or 870 lots. Of this volume, 57% were apartments and apartments in elite class buildings, while business class housing occupied 43%.
In addition to the advantages that are characterized by the unique location of the island – proximity to the business center, the isolated nature of the location, unique species characteristics, a homogeneous composition of residents and a favorable environmental situation, the popularity of Petrovsky Island is also due to the price level of apartments and apartments. At the end of 2023, the weighted average price in elite new buildings amounted to 550 thousand rubles/sq. m, which is 13% lower than the same indicator for the elite market in the city as a whole. New business class buildings, on the contrary, were exhibited at a price 10% higher than the city-weighted average of 434 thousand rubles/sq. m.
The dynamics of prices per square meter on the island reflects the general trends of the primary housing market in St. Petersburg, however, a detailed analysis from the beginning of the development of the territory shows a more pronounced increase in cost. From the period 2015-2016 to 2023, the average price per square meter in new business class buildings on the island increased 2.7 times, and in elite facilities it doubled. At the same time, these indicators increased by 2.5 and 1.8 times, respectively, throughout the real estate market.
Due to the improvement of landscaping and the development of social and transport infrastructure, interest in Petrovsky Island from buyers continues to grow.The peak of their activity occurred in 2021, when the total area of apartments and apartments sold in all classes amounted to 71 thousand square meters. m. The high interest in lots was due to the demand accumulated during the pandemic and the program of preferential mortgage lending that was fully operational. In 2022 and 2023, the trends in demand for housing on Petrovsky Island corresponded to the general trends of the premium class market: in conditions of geopolitical instability, buyers preferred to take a break, but then demand recovered again.
Since 2020, Petrovsky Island has held a leading position in terms of the number of square meters sold among premium locations for home purchase. In 2023, the share of sales on Petrovsky Island in the luxury housing segment reached 55% of the total volume of luxury properties sold in St. Petersburg. However, in the business class segment, its share is noticeably smaller and accounts for only 20% of the total demand for such housing.
Aliya Khanbekova, head of the elite real estate department of NF Group in St. Petersburg: “Currently, the development potential of Petrovsky Island is almost exhausted: there are only single plots of land for residential construction. But currently only one project has permits – the second stage of the NevaResidence residential complex, the start of sales of which is expected at the end of 2024. Two more projects are at the stage of development of project documentation. Against the background of the expected reduction in supply in the primary housing market, investors and people considering this location as a place to live should not postpone the purchase of real estate on Petrovsky Island.”
Источник: www.bsn.ru
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