St Petersburg business-class new build supply rises 7% in half-year

The supply of business-class new builds in St. Petersburg grew by 7% to 295,000 square meters in the first half of 2026, but new project launches fell sharply to just 26% of the previous year's level. Only 98,000 square meters of new supply entered the market, while 1,300 apartments were sold. Sales spiked in January due to changes in subsidized mortgage programs, then dropped to 310-460 monthly registrations, showing the segment's continued dependence on family mortgage availability. Business-class construction is highly concentrated in three districts, which account for 64.2% of all new builds. Developers face rising costs, with materials up 15-30% and construction work up 30-50% annually, leading to expectations of moderate demand and cautious new project launches.