Should I buy housing in St. Petersburg now or wait

What is happening in the real estate market

The pandemic and jumps in currency rates hit all business sectors, they also did not bypass construction. Against the backdrop of alarming news, the market revived: by the end of the first quarter of 2020, prices increased in new buildings as wellThe results of the first quarter in the market of new buildings: developers seized the moment, and on the secondaryIn the first quarter, prices for secondary real estate increased in almost all cities market.

The demand situation is ambiguous. So, some buyers chose to postponePeople prefer to postpone the purchase of housing amid devaluation buying an apartment for later and wait until the situation becomes more or less certain. Others, on the contrary, rushedThe collapse of the ruble has sharply increased the demand for real estate. What is important to know invest in housing before prices get even higher. However, there is no reason for panic: the temporary excitement will be replaced by a lull, which means that a significant rise in prices is unlikely to be expected.

Pyotr Buslov

Head of marketing group of CDS company.

On the one hand, for objective reasons, we can expect a decrease in demand for housing under construction. But, on the other hand, we are seeing a downward trend in supply. These trends will counterbalance each other and keep prices at the current level. As a result, at the end of the year, we can see a price increase close to zero.

The situation is complicated by the tightening of requirements for developers and the transition to escrow accounts. Shareholders' money is now keptFederal Law of 30.12.2004 N 214-FZ "On participation in the shared construction of apartment buildings and other real estate objects and on amendments to some legislative acts of the Russian Federation ", Article 15.4 on a special account, and the developer can receive Federal Law of 30.12.2004 N 214-FZ "On participation in the shared construction of apartment buildings and other real estate objects and on amendments to some legislative acts of the Russian Federation ", Article 15.5 them only after putting the house into operation. According to the February forecastQuarter valuation: house prices were forecast to rise by 25% Council of the Federation, such measures can provoke a rise in housing prices by 25% in the next couple of years.

However, it is still difficult to say whether these predictions will come true or not. It all depends on when the quarantine measures will be lifted. If by the summer most countries leave the quarantine and begin to recover the economy, the price of oil may rise, which means that the cost of housing will also go up.

Pyotr Buslov

In St. Petersburg, there is still potential for a significant increase in real estate prices in the coming years due to the small volume of supply on the market for housing under construction. As a result, over the next 5 years, we can see an increase in prices for new buildings in the range of 40-50%. In 2 years, the increase can be 10-15%. This scenario can be realized if the price of oil in the coming months returns to the level of $ 50 per barrel.

Those who had only plans to buy an apartment can breathe out: there are no grounds for a significant increase in mortgage rates yet.

Pyotr Buslov

At the moment, the Central Bank is not raising its key rate to support economic activity in the country. For buyers in strong financial position, this is a good opportunity to purchase property with a mortgage loan while rates remain at historically low levels.

In the end, it's worth remembering that an apartment is a pretty solid asset. Even if in some periods its price may fall, in the end it still recovers and continues to grow.

Pyotr Buslov

A good situation has developed on the market for purchasing an apartment: a temporary lull in demand provides a larger than usual choice of objects at stable prices. If anti-epidemiological measures are lifted in May, then by summer we can expect a recovery in demand for residential real estate. So now is the moment to take advantage of.

4 rules to help you choose an apartment in a crisis and not miscalculate

Look for options that can increase in price

Traditionally, apartments within walking distance from the metro are considered attractive for most buyers, but when choosing a home you need to look not only at this parameter. If you plan to sell an apartment sooner or later, consider the area's ground transport accessibility and the presence of shops, schools and clinics nearby. It will be easier to sell housing in a habitable place than an apartment in a house in settlements where there is no basic infrastructure.

Pyotr Buslov

In a way, secondary housing is a safer asset, because the house has already been built. However, the risks of purchase fraud remain. The primary market provides a wider offer in modern and high-quality projects that will be as liquid as possible in the coming years.

If you are looking at new buildings, check with the developer how the area will develop further. Ideally, he should take care of the construction of nearby schools and kindergartens. It makes sense to think about buying an apartment in a residential complex that is almost ready - so you will have to wait less for the developer to provide the necessary infrastructure.

Be critical of discounts

It happens that developers dump and expose apartments (for which there is often no demand) at incredibly low, even non-market prices. It is better not to react to such offers, as there is a risk of buying a long-term apartment. Building without earning anything is simply impossible.

It happens that unpopular types of layouts are sold at a big discount, but this option should not be dismissed. Maybe just such a non-standard planning solution will suit your lifestyle.

Alena Kvach

Private real estate expert.

If we are talking about complex development, then I advise you to consider the second and subsequent stages. As practice shows, in the first stage it is uncomfortable, such an object is difficult to rent or sell. I recommend paying attention to finished apartments, as the consumer's focus is on the “here and now”.

Choose an apartment with a high degree of readiness

The closer the house is to commissioning, the lower the risk that construction will stop. It should be borne in mind that a pandemic and economic shocks can significantly change the balance of power: experts predictThe economic situation caused by the pandemic may lead to the monopolization of the construction industry monopolization of the construction industry and bankruptcy of small developers. In order not to run into a company that is on the verge of ruin, take a look at file of arbitration cases and check if there is a bankruptcy case against the developer.

If you want the maximum profit, take a home from a well-known developer at the excavation stage. Now almost all new complexes are being built under the project financing scheme with the use of escrow accounts. Funds are insured for themFederal Law of 23.12.2003 N 177-FZ "On insurance of deposits in banks of the Russian Federation", therefore, even if the developer is doing badly, you can still get the money back.

Alena Kvach

The primary market turned out to be prepared for the current situation. Construction companies are included in the list of continuously operating organizations, therefore, even in the current conditions, all work processes are carried out according to schedules. The overwhelming majority of developers continue construction of facilities, taking into account additional organizational verification measures.

The processes associated with working in the new conditions are now being automated at an accelerated pace. All work with consulting clients, sales and negotiating deals has been transferred online. Mechanisms for remote execution of transactions, including those using loan products of some banks, have also been debugged.

Check the developer's integrity

Start by checking the documents - you can find them on the construction company's website or request copies from a sales person. You must be providedFederal Law of 30.12.2004 N 214-FZ "On participation in the shared construction of apartment buildings and other real estate objects and on amendments to some legislative acts of the Russian Federation ", Art. 20 the constituent documents of the developer, certificates of state registration and tax registration, as well as accounting reports and audit reports.

Alena Kvach

To secure your investment, it is imperative to check the developer's reputation. It will not be out of place if he has not only a transparent reputation and extensive development practice, but also assets, such as a bank of land for subsequent development and his own production.

It is also worth making sure if the company has a building permit, land rights and a project declaration. The developer has no right to refuse to provide these documents.