Investors stopped buying apartments in St. Petersburg
Apart-hotel market of St. Petersburg has gone into a stage of stagnation. Purchasing excitement was replaced by a point choice, and the yield fell from 12-14% to 7-8% per annum. This is reported by DP.
Apart-hotel market of St. Petersburg has gone into a stage of stagnation. Purchasing excitement was replaced by a point choice, and the yield fell from 12-14% to 7-8% per annum. This is reported by DP.
The city is implementing about 54 projects of apart-hotels for 5.2 thousand units. The share of apartments in the planned commissioning for 2026 is 62%, but the pace of sales is slowing. The days when investors bought units in bundles are over, experts say. The main problem is the gap between the purchase price and the real rental flow: the square meter has risen in price, and the profitability of the hotel business has not increased proportionally.
Pressure is exerted by an increase in transaction costs and a decrease in occupancy. Management companies compete through technology. Aparthotels remain an attractive format for developers, but legislative uncertainty puts the development of the segment at risk. The demand for apartments in St. Petersburg in 2026 has already fallen by almost 1.5 times.
