Despite a significant drop in demand, prices for new buildings in St. Petersburg have risen by 4% in the first four months of 2025 and by 8-9% compared to the previous year. This increase is attributed to several factors, including rising prices for building materials, labor shortages, and expensive project financing.

While prices in St. Petersburg are climbing, the Leningrad Region offers a more affordable alternative. Although square meter prices are also increasing in the Leningrad Region, they remain almost 40% lower than those in St. Petersburg.

Several construction companies have reported price increases in their projects. For instance, one company noted an average price increase of 13% per square meter in its projects over the past year. Another company reported a 3% price increase since the beginning of the year, which they attributed to project readiness and reduced commodity backlog.

The most substantial price growth is observed in higher-class apartments. Business class apartments have seen a 9% increase since the beginning of 2025 (18% over 12 months), reaching 433,000 rubles per square meter. Elite class apartments have also increased by 9% in the first four months of 2025 (22% to April 2024), with an average price of 684,000 rubles per square meter.

To stimulate sales, developers are offering various incentives, such as promotional offers, discounts for specific buyer groups, and installment plans. Installment plans have become a significant driver of demand, with the share of transactions using them increasing substantially in 2024-2025. However, these promotions are often temporary and may not significantly impact overall financial performance.

The price difference between St. Petersburg and the Leningrad Region remains significant. The average cost per square meter in a residential area of St. Petersburg is more than 38% higher than the cost in regional complexes.

Within St. Petersburg, price growth varies by district. The Krasnoselsky district experienced the fastest price growth for mass market properties, with a 21% increase over 12 months. The Kalininsky and Vasileostrovsky districts also saw significant increases of 12-14%.

Analysts note that areas closer to the city center continue to offer the greatest potential for price growth, particularly in redeveloped areas with established infrastructure. The development of transport infrastructure is also driving price increases in districts such as Krasnoselsky and Pushkinsky.