Date: Oct 5-6, 2021 | Time: 10AM – 5PM
Venue: Holiday Inn, Moscow

Market Scenario

RUSSIA's Building & Construction Market

Russia’s construction industry remains one of the key catalysts of economic growth in Russia. The industry is expected to grow further in the years to come as the government aims to undertake multi-billion-dollar investments in order to modernize and expand the country’s infrastructure. Alongside these government projects are private funded projects by organizations looking to profit from the many opportunities arising through the modernization of the country.

The Russian Ministry of Construction has released the draft Strategy for Developing the Construction Industry in Russia by 2030, which could lead to significant changes in the Russian building industry and the building and finishing materials and equipment market.

The strategy Developed by leading experts from a range of professional and governmental institutions, aims to promote the use of innovative materials and simplify the approval process for their use.

Vladimir Yakushev, Russian Minister of Construction and Housing and Communal Services, announced at the Time for Change residential real estate conference on 21 October, that multi-unit housing of about 44-46 million square meter is set to be commissioned by the end of 2019. Similar housing and non-residential projects are on the way projecting the demand till 2030.

Though Russia's construction industry has been severely affected by disruption caused by the COVID-19 pandemic, the industry will recover, however the industry will strongly recover with effect of the investments and developments projects for 2021-30 decade and expects an average annual growth of 2.6% between 2021-2024.

  • Annual Construction spending estimated around USD 1Tn
  • 20,000+ active Construction & Engineering projects
  • 4% Annual growth expected un 2021-30 decade.
  • 25000+ construction retail chains and distribution network

Market Drivers

  • The government is focusing on the construction of a high-speed rail network and plans to construct 11,000km of track to connect Moscow, St Petersburg, Samara, Krasnodar and Novosibirsk by 2030.
  • To provide housing to the country’s middle- and low-income group, the government is focusing on the construction of affordable houses across the country. Accordingly, under the Housing for Russian Family program, the government is building 500,000 two-room apartments annually with an investment of USD 400mn since 2017. Until 2016, the target reached 3lakh plus units annually with an average annual growth rate of 1% between 2014 and 2016.
  • Program for renovation of dilapidated housing in Moscow: by 2032 over 5000 old law-rise buildings will be replaced by the new ones boosting construction and equipping;
  • Under the Energy Strategy of Russia 2030, the government plans to increase the country’s installed power capacity by 52.7%, from 232.5GW in 2016 to 355–445GW by 2030. Accordingly, it plans to invest RUB9.8 trillion (US$255.4 billion) in new power plants.