The Market for CastorX Capital

     

The Market

 

St. Petersburg is Europe's fourth largest city with estimated inhabitants around 4.6 million and is a regional centre for the entire North West of Russia with approximately nine million people.
 
Fuelled by factors such as high commodity prices, increasing domestic demand and increasing investments, the Russian economy has shown strong development during recent years. During the period 2003 to 2007, the average annual growth rate of GDP per capita was 7.3 per cent which can be compared with the average annual growth rate of 2.2 per cent for the EU. During October 2008, the economic development came to a stop and started to fall. For the full fiscal year of 2008, the GDP growth stopped at 5.6 per cent. The World bank anticipates a GDP decline of 4.5 per cent during 2009 and a growth in GDP during 2010 and forward.

 
The demand for residential property in Russia is strong and residential provision is one of Russia’s national priorities. The average stock per inhabitant in Russia, at about 21 sq. m., is lower than in Central European countries and much lower than in Western Europe (e.g. average 36 sq. m. in EU15 capitals).
 
St. Petersburg has a fast-growing economy supported by the strong Russian macro fundamentals and the sea access to Western Europe. The market for residential property benefits from a transition from older apartments to larger, newly constructed single-family homes, the federal housing programme and possibilities to debt financing.

Map over Market for CastorX Capital

 

St. Petersburg

In recent years, real-estate prices have risen sharply and this is a trend that is expected to continue. CastorX Capital believes that the residential property market in St. Petersburg will continue to offer attractive investments possibilities and a good return on investments.