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. Last Updated: 07/27/2016

Real Estate Market Begins to Bottom Out

ST. PETERSBURG — The decline in real estate prices in the country’s two largest cities has eased, suggesting that the sector may be nearing the bottom.

In August, prices for residential real estate decreased by just 0.7 percent in St. Petersburg and 0.3 percent in Moscow, according to the Construction News Agency. Both figures are down from July, when real estate prices fell 1.8 percent in St. Petersburg and 1.4 percent in Moscow.

By the end of August, the average cost of a square meter in St. Petersburg was 69,500 rubles ($2,200), and 136,700 rubles in the capital.

During the summer, residential real estate in St. Petersburg lost 5.4 percent of its value, while Moscow housing now costs 4.3 percent less than it did in the spring. The relative stability of the current microeconomic situation suggests, however, that a further decrease in ruble prices for real estate this autumn is much less likely. In some local districts and segments of the real estate market, growth in prices is possible by the end of the year, the agency said

Further change in real estate prices throughout the country will be defined in the near future not by global microeconomic changes, but by the characteristics of local markets as well as government economic policies, it said.