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. Last Updated: 07/27/2016

No Relief for St. Pete's Potential Buyers

As St. Petersburg residents brace against skyrocketing residential prices, industry analysts say prices will continue to rise in the northern capital.

"From January to May the price of residential real estate increased by 30 percent in all cities with populations of 1 million people," Sergei Kruglik, head of the Federal Construction and Housing Maintenance Agency, said last Tuesday, Interfax reported.

According to real estate agency Becar, the average price of apartments in St. Petersburg has been increasing by 2 percent to 3.5 percent per week, while last month inflation in the city was only 1 percent.

Becar expects the prices of real estate to increase through next year. "By 2006 the market got really hot. It was obvious prices wouldn't fall, and buyers rushed to close deals using mortgage schemes, which pushed prices even higher," said Irina Gudkina, deputy director of Becar.