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10% more of transactions on acquisition of apartments in St. Petersburg center in 2014

According to the data of ASTERA an alliance member of BNP Paribas Real Estate, the number of transactions on acquisition of residential real estate in the center of St. Petersburg has increased by 10% compared to the same period of the last year. Thus, the cost of apartments in the city center and in certain locations on the outskirts has almost become equal.

‘According to our data, the share of transactions on acquisition of apartments in the center of St. Petersburg has significantly increased in 2014, particularly in Central and Petrogradsky districts, due to the sale of apartments in residential districts. Compared to the last year, we observe the surge of the number of such transactions by 10%. If earlier these purchases were rare, today we close 2-3 deals per quarter’, - notes Anna Kalinina, head of Elite Residential real estate department at ASTERA an alliance member of BNP Paribas Real Estate.

According to ASTERA analysts, this situation can be partially explained by the fact that the cost of apartments in some residential complexes on the outskirts of St. Petersburg and in the center of the city has equaled. ‘Thus, today the cost of a 3-bedroom apartment with the area of 110 sq.m in monolithic brick building, erected in 2003 and situated on Toresa prospect, 71, building 1, amounts to 15.9 million rubles. The value of a 3-bedroom apartment with the area of 90 sq.m in old housing stock and after the major repairs, located on Kirochnaya street, 48, on the corner of Tavrichesky garden is 15.5 million rubles. There are a lot of such examples. Similar deals are concluded with premises at the price of 8-12 million rubles. In popular residential locations such as Leninsky prospect and surroundings of Ozerki metro station, the cost of apartments is already comparable’. – states Anna Kalinina.

One of the reasons that St. Petersburg residents move to the city center is worsening transport issue, and the desire to send their children to premium educational institutions. ‘Every year there is more and more traffic on the roads of St. Petersburg and many people prefer moving closer to their workplace against losing 2-3 hours per day on the road. Moreover, a lot of prestigious educational facilities are located in the city center such as the Anglo-American and French schools and kindergartens, strongest language and physico-mathematical schools, and also different cultural and leisure facilities, sports schools and art clubs. For parents who wish to give their children better education, this factor is a strong incentive to move. Thus, apartment sales in the city center is caused by the desire of the owner to move to the country’, - adds Anna Kalinina.

In developed countries suburbanization, which is the relocation of wealthier part of population from large cities to suburbs, has started in the 60s of XX century. In the USA more than 60% of population already lives in small residential areas located around the center of agglomeration. Over the past decade this tendency has appeared in Russia. At the same time, vacant quality real estate premises in the city center are acquired the middle class representatives.

‘Russian realities differ from European and American ones. Living in the center of Moscow and St. Petersburg is still attractive for the most part of population despite disadvantages (non-uniform social environment, bad condition of public accommodation, unfavorable environmental situation). For many residents of St. Petersburg the acquisition of apartment in the city center is a lifelong dream and all the benefits concerning the living in this location outweigh the drawbacks. I suppose that in the coming 10 or even 20 years St. Petersburg center will not lose its attractiveness for the residents’, - summarizes Anna Kalinina.