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The Demand for Small-size Housing is Growing

2015 february 27

According to the Petersburg Real Estate Consulting Center, the average area of an apartment in a new building in the city, bought in 2014 has decreased by 7% for the six months. While in June 2014 the average apartment area in the mass-market class in lived-in areas of St. Petersburg was 51.2 sq. m, by January 2015 it was already 47.6 sq. m.

“The trend of the popularity of small-area flats in the mass-market class that has been observed in the new construction market in the recent years has continued in the second half of 2014," Olga Trosheva, Manager of the Petersburg Real Estate Consulting Center, says. “Firstly, small-size housing is normally a highly liquid product. Secondly, it is popular among buyers due to its lower summary cost. The largest decrease of the average area of sold apartments has been observed in the lived-in areas of the city, where it has amounted to 7% for the recent six months.”

The supply of apartments from developers is also within this trend: developers offer their buyers the housing that in the keenest demand with them. Whereas in early 2014 the average area of an apartment sold in new buildings of the city was 51.7 sq. m, by the start of 2015 it decreased to 48.8 sq. m. 

If we take new mass-market sites entering the market, here the trend of a decreasing average area of an apartment is observed, too. Whereas in new houses, in which sales were started in early 2014, the average area was 51.7 sq. m, in the sites that entered the market at the end of the year it was already 41.1 sq. m. 

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