Housing class boundaries blur in St. Petersburg

Legislative definition of housing classes in Russia is still absent, so market participants interpret categories differently. In practice, boundaries between segments are becoming increasingly blurred: solutions typical of the business class are gradually transitioning to the comfort class, and buyers focus not on formal labels but on the real quality of the living environment.

In the first quarter of 2026, in St. Petersburg, about 90% of new-build transactions were in the mass market, another 8% in the business class, and 2% in the elite segment. In the suburbs, the structure is even more homogeneous: almost all purchases are made in the mass market. These data are provided by Olga Kobyakova, commercial director of Petersburg Real Estate (Setl Group). According to her, the mass market targets a wide range of buyers, while the business and premium segments maintain stable demand from investors purchasing housing to preserve capital.

At the company Glavstroy St. Petersburg, in the first half of 2026, the comfort class accounted for 76% of sold area in the city, business class 19%, and elite 4%. In the Leningrad Region, the dominance of the comfort class is even higher at 92%, economy class took about 8%, and business less than 1%. Commercial director of the company Alexey Bushuev noted that the weighted average price per square meter in St. Petersburg exceeded 309,000 rubles ($3,400), which is 23% lower than business class and almost half that of the premium segment. In the Leningrad Region, this figure was about 178,000 rubles ($2,000), which is practically equal to the cost per square meter in comfort-class projects.

Maria Martemyanova, sales director of the A101 Group in St. Petersburg, said that comfort and comfort-plus account for 75–80% of demand. According to her, a notable trend is the reduction in the introduction of panel buildings, which naturally reduced the share of economy class to 10%. In the business and premium classes, introduction rates remained, although supply traditionally exceeds demand: in the business class, 20–25% of supply versus 15–20% of demand, in premium, 5–10% versus 3–5%.

Oksana Ponamorenko, director of marketing communications at L1, noted that in the first quarter of 2026, the premium segment saw a temporary decline in the number of transactions due to large-scale sales in the previous year, but there is a high volume of accumulated deferred demand. In the business class, she recorded a decrease in demand due to the overall cooling of the market and a reduction in the number of new projects in traditional business locations.

Sergey Sofronov, commercial director of the PSK Group, clarified that premium accounts for no more than 5–7% of demand, business class about 15%, and the rest is comfort, which varies greatly in price depending on location. He also noted that during periods of demand spikes caused by changes in preferential mortgage programs, medium- and low-priced real estate can account for up to 90% of transactions.

The high cost of mortgages has affected buyers in the mass segment the most. After the end of the preferential program, mortgages became inaccessible for some potential clients. Olga Kobyakova noted that installment plans became the key tool to support demand, and after the introduction of restrictions on family mortgages, their share rose again. According to Ekaterina Nemchenko, commercial director of the holding RSTI, as the key rate decreased, the share of transactions with market mortgages reached 23% in May. These are usually small loan amounts or special bank programs (tranche mortgages, subsidized rates). However, most potential buyers are still taking a wait-and-see approach.

Yudita Grigaite, marketing director of the Lenstroytrust Group, added that the high cost of mortgages has made buyers more rational. The selection cycle has increased significantly, and product requirements have grown: regardless of budget, buyers increasingly choose not just an apartment but a living environment.

Maxim Zhabin, development director of the Edino Group, highlighted the main change in the mass segment: buyers now calculate not the price of the apartment but the monthly payment. According to him, part of the audience has gone into waiting mode. Today three behavior patterns can be distinguished: waiting for a rate cut, searching for preferential programs and installment plans, and moving to more affordable areas or smaller spaces.

The demands of buyers in St. Petersburg and the Leningrad Region differ significantly. Yudita Grigaite noted that in the city, requirements for location, architecture, and transport accessibility are higher, while in the region, the main factor is the ability to buy a larger apartment for a comparable budget. Maxim Zhabin added that in St. Petersburg, the buyer pays for location, address status, and liquidity, while in the Leningrad Region, they pay for the ratio of price, size, and everyday convenience.

Oksana Ponamorenko recalled that in the Leningrad Region, price growth in the economy class was only 8% per year, in comfort about 13%. According to her, demand is shifting from individual plots to quality infrastructure and ready-made lifestyle scenarios.

Experts agree that housing classes are no longer just price categories. Maxim Zhabin noted that the comfort class is becoming more comfortable: layouts, courtyards, finishes, and public spaces are improving. The business class is increasingly moving towards environment and service — architecture, privacy, lobbies, parking, engineering. Premium, in turn, requires rarity, silence, privacy, and an architectural concept.

Sergey Sofronov emphasized that premium real estate is a segment of advanced development, where technical equipment and service infrastructure play a key role. «The living experience in such a house differs significantly from the experience of living in mass-development homes,» the expert noted. Lower classes gradually borrow similar solutions, adjusted for the cost per square meter.

Ekaterina Nemchenko added that developers are not simplifying projects but are looking for additional options. Ideas that were previously available only in the high segment are now applied in projects of other classes.

Maria Martemyanova identified the main parameters determining the class of real estate: architecture, finishing of common areas, infrastructure, technology, layout, and management. In her assessment, the comfort class demonstrates the widest range of compliance with these criteria. She also noted that safety indicators have come to the forefront: a closed courtyard, video surveillance, and landscaping. Technological development has standardized smart home systems for the comfort class, and attention has increased to materials with FSC and LEED/BREEAM certification, as well as air recovery and filtration systems.

Olga Kobyakova gave an example: Setl Group is introducing into comfort-class projects unified entrance groups with lobbies and relaxation areas, apartments with terraces and front gardens — solutions previously typical of the business class.

Alexey Bushuev emphasized: «The differences between segments are increasingly determined not by the basic set of functions, but by the level of their implementation and the quality of execution.» Modern engineering systems, digital services, closed courtyards, and a variety of layouts — what was considered an advantage of the business class a few years ago is now becoming the standard for quality comfort projects. He also noted that buyers« expectations are increasingly less dependent on administrative boundaries and more on the quality of the project itself.

The share of the business class in mortgage transactions is growing faster than in other segments. Mikhail Rogatykh, director of sales development at the Aquilon Group, cited Domklik data, according to which in three years in St. Petersburg this share has increased from 12% and is approaching 20%. He also reported that in the «ORO from Aquilon» project, the cost per square meter is about 370,000 rubles ($4,100), which is 21% below the average market level.

Tatiana Khalilova, director of sales department at GloraX, emphasized that in conditions of uncertainty, high-class real estate remains a reliable tool for capital preservation. Oksana Ponamorenko noted that the shortage of quality plots in premium locations forces developers to launch projects on the periphery or through redevelopment.

Maxim Zhabin agreed that high segments are more stable due to less dependence on mass mortgages, but stressed that price alone does not make a project premium. Sergey Sofronov cited statistics for his premium projects: actual sales outpaced the plan by almost 20%. «The mass market allows working with floating broad demand, while expensive real estate works with a market volume many times smaller but without large fluctuations,» he said.

Ekaterina Nemchenko believes that price decides everything only in conjunction with financial programs. Developers are approaching the launch of new projects in 2026 cautiously: project financing is expensive, market mortgages are not working due to high rates, and preferential programs have been reduced to a minimum. She also noted that there are almost no free plots left in the city, and sales launches are rare, which will affect the volume of supply and prices.

Oksana Ponamorenko believes that the market is moving to a «seller»s market«: the volume of available lots on the city»s secondary market has decreased by 15%, leading to higher prices. The average price of «new secondary» housing has exceeded the cost per square meter in new buildings.

Mikhail Rogatykh reminded of citizens« accumulated savings — more than 60 trillion rubles (more than $666,666,666,700). As the key rate declines, part of these funds may flow into the economy, and real estate will remain one of the most reliable tools for capital preservation.

Sergey Sofronov forecasts stability in expensive housing segments, dependence of the mid-price category on the parameters of the house and apartment, and maximum sensitivity of the lower price segment (170,000–300,000 rubles per sq. m, or $1,900–$3,300) to mortgages and preferential programs.