Housing class boundaries blur: premium enters mass market

In the first quarter of 2026, almost 90% of new building transactions in St. Petersburg were in the mass market, 8% in business class, and 2% in luxury real estate. In the suburbs, the share of the mass segment reached nearly 100%, reported Olga Kobyakova, commercial director of Peterburgskaya Nedvizhimost (Setl Group). According to her, the business and premium segments maintain stable demand from investors who purchase apartments to preserve capital.

At Glavstroy St. Petersburg, for January–June 2026, the structure of sales in the city was as follows: comfort class — 76%, business class — 19%, luxury segment — 4%. In the Leningrad Region, comfort occupied 92%, economy about 8%, and business less than 1%. Alexei Bushuev, commercial director of Glavstroy St. Petersburg, noted that the weighted average price of a realized square meter in St. Petersburg exceeded 309,000 rubles (approximately $3,400 at current rates), which is 23% lower than business class and almost half that of premium housing. In the Leningrad Region, the price was about 178,000 rubles (approximately $2,000 at current rates), nearly matching the cost per meter in comfort.

Maria Martemyanova, director of sales at A101 Group in St. Petersburg, said that comfort and comfort-plus classes dominate, accounting for 75–80% of demand. A trend is the reduction in the commissioning of panel buildings, which has naturally lowered the share of economy class to 10%. In business and premium, commissioning has been maintained, although supply traditionally exceeds demand: 20–25% versus 15–20% in business, and 5–10% versus 3–5% in premium. She highlighted a trend toward chamber projects with unique options — buildings with up to 300 apartments in business class and exclusive penthouses in premium.

Oksana Ponamorenko, director of marketing communications at Company L1, noted a temporary decline in the number of transactions in the premium segment in the first quarter of 2026 due to large-scale sales last year, but the volume of deferred demand is high. In business class, she recorded a decline in demand due to a general market cooldown and a reduction in new projects in classic business locations. Sergei Sofronov, commercial director of PSK Group, clarified: «The premium segment accounts for no more than 5–7% of demand, about 15% is business class, and all the rest is «comfort,» which, in turn, varies greatly in price depending on location. During periods of demand surges caused by further changes or the cancellation of subsidized mortgage programs, the structure changes, and the share of mid- and lower-priced real estate can reach up to 90%.»

Tatyana Khalilova, director of the sales department at GloraX, emphasized: «Business class and premium show relatively high stability thanks to an audience that is less dependent on mortgage lending. Notably, St. Petersburg today leads among the country«s largest cities in terms of price growth for new buildings.» In comfort class, the buyer is maximally sensitive to the monthly payment, and even with a persistent need for housing, high rates force delaying the decision, seeking family mortgages, installment plans, or more affordable areas, added Maxim Zhabin, development director at Yedino Group. In the business and premium segments, demand is more stable because the logic of purchase is different — more often it is not just a solution to a housing issue but capital preservation, quality of life improvement, acquiring a rare product in a good location.

In the first half of 2026, in Aquilon Group«s projects in St. Petersburg, 67% of purchased lots were in the mass market. Mikhail Rogatykh, director of sales development at the group, reported that the most popular were studios (31%) and one-bedroom apartments with standard layouts (22%). In the company»s transaction structure, 33% of sold lots were in the business-lite (21%) and business (12%) segments, where the client is less dependent on mortgage programs and more often views real estate as a capital preservation tool.

The high cost of mortgages primarily affected buyers of mass-market housing. After the end of the subsidized program, mortgages became inaccessible to some potential clients. Olga Kobyakova noted that in these conditions, installment programs played an important role; then their share declined amid expectations of a key rate cut, but after restrictions on family mortgages were introduced, installments along with individual programs again became one of the key sales tools. Ekaterina Nemchenko, commercial director of RSTI Holding, said: «During the key rate reduction process, transactions with market mortgages became more frequent and in May accounted for about 23% of mortgage transactions. As a rule, this is either a small loan amount or special bank programs such as tranche mortgages or subsidized rate programs.»

Yudita Grigaite, marketing director at Lenstroytrust Group, noted that the high cost of market mortgages has made buyers significantly more rational: «If earlier the purchase decision was made faster, today the selection cycle has noticeably increased. At the same time, requirements for the product itself have grown. Regardless of budget, buyers are increasingly choosing not just an apartment but a living environment.» Maxim Zhabin highlighted the main change in the mass segment: the buyer has started counting not the price of the apartment but the payment. Now, according to him, three main behavioral models can be identified:

Oksana Ponomarenko emphasized that due to expensive mortgages, sellers and developers have to look for new opportunities; currently, installment plans are in good demand, including for finished apartments. Sergei Sofronov cited statistics on the decrease in the number of new property purchases in St. Petersburg: declining demand is slowing supply, new launches are decreasing, creating a low base potential for the near future. Tatyana Khalilova added: if several years ago the key factor was the monthly payment burden, today clients carefully evaluate the liquidity of the property, development prospects of the location, infrastructure, and project quality. Buyers take longer to compare offers and approach the purchase more thoughtfully.

Despite persistently high mortgage rates, comfort class remains the main driver of demand. Alexei Bushuev explained this by the market structure: it is in comfort that the largest comprehensive territorial development projects are concentrated, forming the main volume of supply.

In the city, requirements for location, architecture, and transport accessibility are traditionally higher, while in the region the key factor remains the ability to purchase a larger apartment for a comparable budget, believes Yudita Grigaite. The potential for comprehensive territorial development in the Leningrad Region is still high. Maxim Zhabin emphasized that buyer demands in the two regions differ significantly: in St. Petersburg, they often pay for location, urban environment, transport accessibility, address status, and liquidity; in the Leningrad Region, the rational motive is stronger — larger area, lower entry budget, the ability to get a family format. «There is higher sensitivity to price, transport, parking, and social infrastructure,» the expert says.

Ekaterina Nemchenko noted that residential complexes in St. Petersburg are embedded in existing infrastructure and complement it. Buyers evaluate the project by a combination of factors: transport accessibility, educational institutions, shops, quality characteristics of the new complex, landscaping, layouts, finishing quality. For buyers in the Leningrad Region, the same issues are relevant, but adjusted for the lack of nearby existing infrastructure. «As a rule, large comprehensive territorial development projects are built in the region, which provide answers to all these questions. And the main expectation of buyers here is the cost of housing, since regional projects are cheaper, primarily due to the cost of land,» she says.

Oksana Ponomarenko reminded that the Leningrad Region stands out with more moderate price dynamics: growth in economy class was only 8% over the year, in comfort about 13%. Buyer demands are shifting from individual plots to quality infrastructure, aesthetics, and ready-made life scenarios. Olga Kobyakova added: «Buyers of urban real estate are more often guided by transport accessibility, proximity to workplaces, developed infrastructure, and the ability to maintain their usual lifestyle. Suburban projects are generally more affordable, and here schools, kindergartens, shops, and leisure spaces directly within the complex or within walking distance are of great importance.»

Sergei Sofronov believes that in mass-segment projects in good locations, a low price is physically impossible, so adding 5–7–10% to the price, which will yield gains in architecture, common areas (MOP), ceiling heights, terraces, landscaping, is more justified than trying to «dry» the cost and appeal only to metro proximity. Following this market reality, the project often gets more options and begins to gravitate toward a higher class. In the Leningrad Region, expectations, on the contrary, are primarily about cost: you can make a wonderful product, but it must meet the basic demand — exchanging location for savings.

Alexei Bushuev reminded that buyer expectations are increasingly less dependent on administrative borders and more on the quality of the project itself. As the agglomeration develops, differences between territories become less noticeable. Maria Martemyanova emphasized that earlier, future residents of economy and comfort classes were concerned about accessibility and transport, but recently safety has come to the forefront: enclosed courtyard, video surveillance, landscaping. «Today, general technological development has standardized «smart home» systems for these housing classes. Also, buyers are paying increased attention to environmental and health issues: materials with FSC and LEED/BREEAM certification, air recovery and filtration systems,» she added.

Housing classes have ceased to be just price categories, believes Maxim Zhabin. The main trend is that the buyer has become more knowledgeable and buys not the class but value. Comfort class is indeed becoming more comfortable: better layouts, courtyards, finishing, public spaces, retail on the ground floors, life scenarios within the block. Business class is increasingly moving toward environment and service: architecture, privacy, lobbies, parking, engineering, quality of materials, home management. In premium, an expensive location is not enough — rarity, silence, privacy, views, architectural idea, and the feeling of a product that cannot be easily replicated are needed.

Sergei Sofronov added: «Premium and deluxe real estate are segments of advanced development. It«s not about architecture, expensive finishes, or some special layouts, but about infrastructure in two directions: technical and service. This is the physical equipment of the house, from the quality of entrance doors to the variety of plants in landscape design. And it is a concentration of services: from reception and video security rooms to equipped spaces for relaxing, exercising, and holding children»s lessons with a tutor. The living experience in such a home is significantly different from the experience in mass-built homes. Lower classes follow the upper ones, gradually implementing similar solutions adjusted for the cost per square meter.»

Ekaterina Nemchenko noted that the current market situation has determined for developers not the path of simplifying projects but the search for additional opportunities and options. Projects are becoming more interesting, attractive, and well-thought-out. Ideas and options that previously were found only in the high segment are now used in projects of other classes. Maria Martemyanova highlighted the indicators that define class: architecture, parameters of common area finishing (MOP), infrastructure, technology, layout, and management. The broadest in terms of meeting these criteria is comfort class, which is linked to buyers« demand not just for square meters but for the district»s infrastructure. It is in the field of infrastructure and environment that competition within comfort is currently taking place.

Olga Kobyakova noted that the importance of technological solutions and services is growing. To remain competitive, developers are constantly improving projects. «Many solutions that are characteristic of business class, Setl Group is implementing in comfort and high comfort. For example, unified entrance groups with lobbies and lounge areas, apartments with terraces, front gardens, and the possibility of installing a fireplace,» she says. Mikhail Rogatykh added that the flow of features from higher segments continues: enclosed courtyards and conceptual landscaping have already become standard in comfort class. Alexei Bushuev emphasized: «Differences between segments are increasingly determined not by the basic set of functions, but by the level of their implementation and quality of execution. We are talking about modern engineering systems, digital services, enclosed courtyards, variety of layouts, developed landscaping, public spaces, and infrastructure for sports and recreation — everything that a few years ago was considered an advantage of business class is today becoming the standard for quality projects in comfort.»

The share of business-class new buildings in the structure of mortgage transactions is growing faster than in other segments. Mikhail Rogatykh cited DomClick data: over the past three years in St. Petersburg, this share has increased from 12% and is approaching 20%. The cost per square meter within the Ring Road (KAD) continues to rise, and the number of new sites for development in the city«s central districts is decreasing. At the same time, according to him, in the business-class project »ORO by Aquilon,« the cost per square meter today is about 370,000 rubles (approximately $4,100 at current rates), which is 21% below the market average.

Tatyana Khalilova emphasized that in conditions of economic uncertainty, high-class real estate remains one of the most understandable and reliable instruments for capital preservation, although competition is intensifying. Oksana Ponomarenko noted: «Although construction costs are rising in all classes, in the high price segment this is offset by stable demand from buyers who value status, architecture, and infrastructure. However, the shortage of quality land plots in premium locations of St. Petersburg forces developers to launch new projects either on the periphery or through redevelopment of existing areas.»

Maxim Zhabin agreed that the high segments feel more stable, but this does not mean the market is growing without limits: «Rather, there is less panic and less dependence on mass mortgages. The business and premium class buyer more often has capital, sells another asset, or makes a decision not only because of the rate but because of the quality of the property. High-budget projects are more stable also because supply in good locations is limited. If a project is truly rare — in location, architecture, views, privacy, service — it competes less on price. But weak projects in the expensive segment are not protected either.»

Sergei Sofronov noted that for his premium projects «Aquatoria» and «Severnaya Korona,» combined since the beginning of the year, actual sales are exceeding the plan by almost 20%. «Mass market allows working with floating broad demand; expensive real estate works with a market volume that is many times smaller but without big fluctuations. Construction profitability is comparable everywhere. For example, the cost of one land plot for a premium house in the center of St. Petersburg can equal the entire construction of a couple of small apartment buildings in the Leningrad Region.» Alexei Bushuev added that stable interest remains in housing in historical areas — on Vasilyevsky Island, Petrograd Side, and in Admiralteysky District, where not only the real estate but also the established urban environment is important.

Price remains the most important factor, but it decides everything only in combination with financial programs that allow buying a new building — the availability of mortgages and installment plans, believes Ekaterina Nemchenko. Developers are cautious about launching new projects in 2026: project financing is expensive, market mortgages do not work due to high rates, and subsidized programs have been cut to a minimum. «Last year, developers were engaged in forming a land bank, and practically no free plots remain for construction in the city. Current supply is being washed out, and sales launches are extremely rare. This will affect future supply volumes and prices. In urban projects, there is practically no economy class — projects from comfort class and above are being built.»

Oksana Ponomarenko believes that the market is transitioning to a «seller»s market« model: the volume of available lots on the city»s secondary market has decreased by 15%, leading to price increases. The average price of «new secondary» housing has exceeded the cost per square meter in new buildings. In 2026, developers consider the most promising for launch to be premium and business class complexes in new locations, as well as comfort class in areas with infrastructure.

Mikhail Rogatykh is confident: deferred demand for residential real estate always exists. «Today, according to the Russian Minister of Finance, citizens« accounts hold over 60 trillion rubles (over $667 billion at current rates). As the key rate decreases, part of these funds will flow into the economy, which could increase inflation. In such a situation, real estate will remain one of the most reliable tools for preserving capital.» Yudita Grigaite added that it is precisely projects with a quality environment that retain their attractiveness even during periods of expensive financing and restrained demand.

Sergei Sofronov predicts that the segments of expensive square meters will remain stable, and demand will react to changes in supply. The middle price category (from 300,000 to about 450,000 rubles per square meter, i.e., $3,300 to $5,000 at current rates) will depend on the combination of the house and specific apartment parameters. The lower price segment (170,000–300,000 rubles per sq. m, i.e., $1,900 to $3,400 at current rates) is maximally dependent on mortgages. Here it is possible to purchase more space under subsidized programs, and any special offers instantly receive a response in the form of growing interest.