Suburban real estate market of St. Petersburg and Leningrad Oblast during the COVID-19 pandemic

Abstract

In this article we analyzed the impact of the COVID-19 pandemic on the suburban real estate market of St. Petersburg and Leningrad Oblast in 2020-2021. During this period, an increase in demand for the rental and purchase of individual residential buildings was recorded in the suburban market. The territorial structure of demand has changed: while maintaining the leading positions behind the districts of the Leningrad Region closest to St. Petersburg, the popularity of remote locations has increased. The growing interest in the suburban real estate market has led to a reduction in supply. Buyers even chose houses in poor condition to demolish them and use the land for new construction. Increased demand and reduced supply stimulated the rise in prices in the suburban real estate market. The St. Petersburg region turned out to be one of the leaders in terms of price growth in the suburban real estate market, along with the Moscow region, the Krasnodar region and the Crimea. Prices increased most strongly in the suburban area of St. Petersburg. The lack of a suitable offer for buyers and the high cost of finished cottages pushed the population to build individual residential buildings. The growing interest in buying land was indirect evidence of the increasing popularity of individual housing construction.