By the end of 1999, St Petersburg had overcome the crisis of the previous year that affected the entire Russian economy. The years 1999 to 2005 brought steady growth in business activity in the industrial, investment, construction, transportation and communications sectors. Investment has been most heavily concentrated in property development, which last year attracted 36% of the total.
The residential property market is likely to increase its share in the coming years, following last June’s amendment of the law on land distribution. The availability of new residential housing is expected to contract by 10% to 15% this year, compared with 2005. Meanwhile, figures for the first quarter show an increase in average property prices from $1113 to $1134 per square metre (m2).
