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In the first half of 2022, stabilization and even a certain decrease in housing prices is possible in the Northern capital, says Artem Golubev, Associate Professor of the Department of Economics at the NWIU RANEPA, Candidate of Economic Sciences.
According to the expert, a sharp rise in the cost of building materials will lead to financial losses among the majority of developers in St. Petersburg, which in turn may provoke a series of bankruptcies. Also, over the past two years, the real estate market has faced a paradoxical situation when, in a crisis and the absence of an increase in real disposable income, the cost of housing continues to increase disproportionately.
“Since May 2020, the average price per square meter in St. Petersburg has increased by more than 60 percent. Such growth is irrational, and therefore it should not be sustainable. In 2022, we can expect at least price stabilization or even a decrease. This will lead to the bankruptcy of a number of companies and reduce competition, because the costs are still high. In addition, there are not so many people who want to buy an apartment now. Developers are forced to make significant discounts,” Golubev noted.
The economist also shared his opinion on whether real estate should be considered a reliable investment in the current conditions.
“Real estate for Russia is an eternal value. It is purchased for investment purposes. From the point of view of rent, this is unprofitable, but if we count on a further increase in the cost of buying, then we are talking about very good investments, ”he explained.
Also, according to experts, worsening mortgage conditions will make buying your own home even more difficult and lead to a reduction in demand.
“Unless, of course, external factors intervene. For example, the continued rise in oil prices and its establishment within $ 100 per barrel, ”the expert added.
Recall that earlier analyst Oleg Repchenko told what loopholes remain in the real estate market in order to buy an apartment cheaper.
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