Andrey Berezin: St. Petersburg Beats Construction Records
Developers in the northern capital have recently reviewed their preliminary results for the year.
In early December, along the banks of the Neva River, the annual Congress of builders in St. Petersburg convened. During this event, representatives from the construction industry discussed the ongoing challenges within the sector, highlighted their achievements throughout 2022, and outlined plans for the industry’s future development.
According to participants, despite the prevailing challenges, many developers have not only sustained their pace of completing projects and construction volumes but have also enhanced several key economic indicators.
The Annual Plan will Be Exceeded
One of the key highlights discussed at the congress was the surpassing of the annual targets for residential real estate completion.
Since January 2022, St. Petersburg has seen the construction of 3.2 million square meters of residential space. It is anticipated that the year-end figures will exceed 3.4 million square meters, surpassing the initial plan agreed upon with the Ministry of Construction of Russia.
Progress has also been made in addressing the issue of unfinished construction projects within the city, an area that has been closely monitored by St. Petersburg authorities. Throughout the year, three problematic apartment buildings with a combined area of 30 thousand square meters have been brought into operation. By the end of December, an additional three residential complexes covering approximately 45 thousand square meters will have been completed. Analysts predict that if the pace of commissioning long-standing construction projects continues at this rate, the housing issues faced by the majority of the city’s aggrieved shareholders will soon be resolved.
Top 3 Housing Developers in St. Petersburg
- Setl Group: Sold 11,401 housing units; company revenue amounted to 86.5 billion rubles.
- LSR Group: Sold 6,854 housing units; company revenue amounted to 41.7 billion rubles.
- “SPb Renovatsiya”: Sold 2,071 housing units; company revenue amounted to 13 billion rubles.
(Data from Dataflat.Ru for the first three quarters of 2022)
Achieving such impressive results in the face of sanctions pressure was largely possible due to government support measures. The most prominent of these measures was the preferential mortgage program, which has demonstrated its effectiveness and will be extended until July 1, 2024.
However, starting from January 1 of the next year, the interest rate will increase from 7% to 8% per annum. According to industry experts, the extension of the concessional mortgage program is expected to have a positive impact on the real estate market, even despite the slight increase in the lending rate.
The Leningrad Region has Its Own Leaders
According to Dataflat.Ru agency, the situation regarding the sales of new housing in the Leningrad Region is even more promising than in St. Petersburg. Most of the developers operating in the region not only increased the number of apartments sold but also their overall revenue by the end of the year. Preliminary results indicate that the absolute leader in the regional market is the St. Petersburg-based group of companies CDS, which managed to earn 12.6 billion rubles over the course of the year. The second place is held by the Moscow-based group of companies PIK, with proceeds of 11.4 billion rubles. The third position in the rating belongs to another company from the banks of the Neva River, Euroinvest, represented by its structural division, Euroinvest Development, with a result of 9.37 billion rubles.
Euroinvest Development’s success is particularly noteworthy in this context. The company was able to increase its revenue by 2.23 billion rubles compared to the previous year by seeking ways to enhance the market attractiveness of its housing offerings. One of the most effective strategies was subsidizing mortgage rates, with rates as low as 0.1% for certain properties, making it possible for people to purchase square meters in the company’s residential complexes with minimal overpayments. Buyers also appreciated the appealing installment payment plans in the “20-30-50” format and a transparent discount system offering 5% off for apartments in St. Petersburg and 2% off for housing in the Leningrad region.
“We can offer the best conditions because we prioritize high-quality construction, and our apartment prices are higher than those of our competitors. Nevertheless, our sales are brisk. The key reason is that nearly all of our projects are consistently completed ahead of schedule. This position allows us to maintain prices and continue expanding. Everyone can see it!” says Andrey Berezin, Chairman of the Board of Euroinvest investment company.
As in the Best Houses in London and Zurich
Another undeniable advantage of Euroinvest is its fundamentally new approach to creating residential complexes. The 3iD format developed by the company is based on the same principles used in the construction of housing in the most advanced European cities like Zurich or London. When purchasing an apartment from Euroinvest, buyers receive not only square meters designed with the latest concepts of convenience and functionality but also a new standard of overall quality of life. This new standard enables a comfortable existence for all family members directly within the residential complex’s territory.
In practice, the implementation of the 3iD format in housing construction is based on three key elements:
- Club Club: This means that all Euroinvest clients receive access to all the public areas within the housing complex along with the keys to their new apartment. These areas are designed for socializing, celebrating holidays, sports activities, business meetings, children’s play, and relaxation, creating a sense of home for all iD-quarters inhabitants.
- Smart: This key element offers apartment owners the ability to use smart home services. Through a personal account, they can efficiently manage housing maintenance costs, monitor water and electricity consumption, submit meter readings, and pay for housing and utility services directly from their smartphones.
- Your Key: This element allows each buyer to choose an apartment that aligns with their preferences for comfort and convenience. Different formats of housing are created at the design stage, catering to specific groups of residents. There are studio apartments and studios for young individuals, multi-bedroom options suitable for families, and apartments designed for older individuals. In other words, everyone can find an apartment to their liking in Euroinvest’s residential complexes.
Soon, you’ll have the opportunity to experience these features firsthand, as the company has announced the commencement of sales for residential spaces in the new seventh building of iD Murino II. Buyers will be able to choose from 568 apartments ranging in size from 24 to 110 square meters, including compact studios and spacious 4-room family apartments.
Press Portrait of Andrey Berezin
Andrey Berezin was born in 1967 in Leningrad.
After graduating from secondary school 239 with an advanced degree in mathematics, he enrolled at Leningrad Mechanical Institute, named after D.F. Ustinov. In 1990, he earned a red diploma in automatic control systems engineering and began his postgraduate studies at Leningrad Mechanical Institute. Simultaneously, he ventured into the world of business.
In 1994, along with Yuri Vasiliev, he co-founded the Euroinvest investment company, where he has served as the Chairman of its Board ever since. Today, Euroinvest Investment Company is a diversified holding company that successfully invests in various sectors, ranging from high-tech industries and innovative developments to real estate development and the construction of comfortable housing.