St. Petersburg topped the ranking of Russian megacities in April regarding the number of new multi-apartment building projects. While different sources offer varying figures, the consensus is that there was a significant increase in new project launches compared to the previous year.
According to ERZ.RF, developers launched 21 new multi-apartment building projects with 8,250 apartments, totaling 334,000 square meters, on the primary market of St. Petersburg (excluding the Leningrad Region) in April. bnMap.pro reported 7 new multi-apartment housing projects launched in the Northern capital, totaling 3,600 apartments with an area of over 148,000 square meters.
However, St. Petersburg developers suggest that these statistics do not fully reflect the real situation, as the method of counting these projects is inconsistent. Some experts counted only four starts in April, while others noted six new projects in the first three weeks of May.
The growth in new buildings introduced in March is considered a natural result of the industry’s adaptation. Major developers have generally adopted a wait-and-see approach with comfort-class projects due to the high key rate and mortgage rates, rising costs, and subdued buyer activity.
The Vsevolozhsk district of the Leningrad Region saw the greatest activity, accounting for 22% of all new launches in the first quarter of 2025. In contrast to the Leningrad Region, St. Petersburg has experienced a significant decline in the volume of new supply in the last two years due to a shortage of land for development, prompting developers to replenish the city market with new buildings.
Business-class and higher projects are now mainly being put up for sale, as these segments proved to be more resistant to the decline in demand and less dependent on mortgages. The emphasis in the center and top areas is on comfort and business class, with well-designed facades, underground parking, and private courtyards.
Experts emphasize that a key factor influencing project launches is the Central Bank’s key rate and the associated cost of project financing. The increased cost of bridge lending, based on the key rate plus additional points, has influenced developers’ behavior. Government support for the construction industry is also considered important.
Developers were mainly launching those projects that they were no longer able to hold back, leading to significantly fewer sales starts expected in the near future compared to the same period last year, which may result in a shortage of housing being commissioned in 2027-2028.