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The new housing market in St. Petersburg has shrunk by almost half
Over the past eight years, the housing construction market in St. Petersburg has lost almost all of its companies. Of the 104 developers working in 2017, only 59 remain. But they have begun to build less. If seven years ago the development area in the northern capital was 12.9 million square meters, now the losses in the region have decreased to 6.7 million square meters. According to ERZ, in 2017, 113 developers were working, and now there are 73, and they are building 4.1 million m2 of houses instead of 6.4 million m2.
Some developers parted ways with close relationships against their will in 2018-2020. The most high-profile stories concern the Norman Group, UNISTO Petrostal and Navis Development Group. They were deceived after thousands of shareholders were “dead”. The bankruptcy of LenSpetsStroy and Glavstroykompleks softened the consequences a little, but there were still few projects. We can recall the SDS company, which was still active in the low-rise housing market, but left the company when its shareholders took responsibility.
In addition, it is now easier for large companies to build and maintain relationships with banks, which determine everything in the market. And it will be easier for authorities to support the "giant" to achieve the goals of commissioning.
The shrine is never empty, the presence of out-of-town and federal players is increasing on the St. Petersburg market. If in January 2017 only 5% of houses were built in the city, then by January 2024 15.3% had already been built. It is obvious that this share will continue to grow.