Construction In Russia – Key Trends And Opportunities To 2023

Following a negative growth in 2017, construction activities in Russia picked up sharply in 2018, with the start of work on the liquefied natural gas (LNG) projects providing a spurt, along with work related to host the 2018 Fifa World Cup. As a result, the country’s construction industry grew by 4.7% in real terms in 2018, compared to -1.2% in 2017. The government invested RUB904.6 billion (US$14 billion) on the development of hotels, transport facilities and other related infrastructure in 11 cities of the country to host the 2018 Fifa World Cup.

The industry is expected to continue to grow over the forecast period (2019-2023), supported by the government’s effort to revitalize economic growth through investments in residential, transport and energy infrastructure projects. Under the National Projects 2019-2021, the government plans to spend RUB5.7 trillion (US$88.2 billion) on the development of transport, healthcare, education and housing infrastructure during the period of 2019-2021.

In real terms, the industry’s output value is expected to post a forecast-period CAGR of 2.54% in 2023.

Key Highlights

– GlobalData expects the residential construction market to retain its leading position over the forecast period, supported by the government’s plan to build residential buildings. In February 2019, the government announced plans to build new residential buildings covering an area of 88 million m2 by the end of 2019. There has also been an expansion in construction of luxury multi-story apartment buildings in Moscow, and to cope with the rising urban population, there is increased investment in renovating old industrial sites, as well as the replacement of Soviet-era housing.

– Under the Water of Russia program, the government is focusing on the development of fresh water distribution systems. In September 2018, the Ministry of Natural Resources and Environment announced plans to provide RUB161.7 million (US$2.6 million) in subsidies for ongoing projects related to the reconstruction, development and modernization of water supply systems.

– GlobalData expects the infrastructure construction market to record a forecast-period CAGR of 7.71% in nominal terms, driven by government’s effort to develop the country’s transport infrastructure. In April 2019, the government announced plans to spend RUB6.3 trillion (US$96 billion) on the development of the country’s transport infrastructure during the period of 2019-2024.

– Institutional construction market’s growth over the forecast-period will be driven by the government’s focus on healthcare and education sector. In 2018, the government announced plan to spend RUB13.8 billion (US$219.1 million) in 2019 and RUB11.8 billion (US$187.4 million) in 2020 for the development of new educational facilities in the country. In addition, in the 2019 budget, the government increased its total spending on education sector by 33.6%, going from RUB619 billion (US$9.8 billion) in 2018 to RUB827 billion (US$12.8 billion) in 2019.

– The total construction project pipeline in Russia – as tracked by GlobalData, and including all mega projects with a value above US$25 million – stands at RUB80.6 trillion (US$1.3 trillion). The pipeline, which includes all projects from pre-planning to execution, is skewed to late-stage projects, with 63.1% of the pipeline value being projects in the pre-execution and execution stages as of August 2019.

GlobalData’s Construction in Russia – Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Russian construction industry, including –

– The Russian construction industry's growth prospects by market, project type and construction activity

– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Russian construction industry

– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Russia. It provides –

– Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Russia, featuring details of key growth drivers.

– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

– Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

– Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.

– Assess market growth potential at a micro-level with over 600 time-series data forecasts.

– Understand the latest industry and market trends.

– Formulate and validate strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

4.1. Economic Performance

4.2. Political Environment

4.3. Demographics

4.4. Risk Profile

5 Construction Outlook

5.1. All Construction

5.1.1. Outlook

5.1.2. Project analytics

5.2. Commercial Construction

5.2.1. Outlook

5.2.2. Project analytics

5.3. Industrial Construction

5.3.1. Outlook

5.3.2. Project analytics

5.4. Infrastructure Construction

5.4.1. Outlook

5.4.2. Project analytics

5.5. Energy and Utilities Construction

5.5.1. Outlook

5.5.2. Project analytics

5.6. Institutional Construction

5.6.1. Outlook

5.6.2. Project analytics

5.7. Residential Construction

5.7.1. Outlook

5.7.2. Project analytics

6 Key Industry Participants

6.1. Contractors

6.2. Consultants

7 Appendix

7.1. What is this Report About?

7.2. Definitions

8 About GlobalData

8.1. GlobalData at a Glance

8.2. GlobalData Construction

8.3. Disclaimer

8.4. Contact Us

List of Tables

List of Tables

Table 1: Construction Outlook

Table 2: Russia, Key Economic Indicators

Table 3: Russia, Construction Output Value (nominal, RUB Billion)

Table 4: Russia, Construction Output Value (nominal, US$ Million)

Table 5: Russia, Top Commercial Construction Projects by Value

Table 6: Russia, Top Industrial Construction Projects by Value

Table 7: Russia, Top Infrastructure Construction Projects by Value

Table 8: Russia, Top Energy and Utilities Construction Projects by Value

Table 9: Russia, Top Institutional Construction Projects by Value

Table 10: Russia, Top Residential and Mixed-Use Construction Projects by Value

Table 11: Russia, Key Contractors

Table 12: Russia, Key Consultants

Table 13: GlobalData Construction Market Definitions

Table 14: Construction Risk Index Ratings and Scores

List of Figures

List of Figures

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix

Figure 2: Russia, Construction Projects Pipeline by Sector (RUB Billion)

Figure 3: Russia, Risk Profile

Figure 4: Russia, Risk Comparison

Figure 5: Russia, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)

Figure 6: Russia, Construction Output Value, Growth Matrix

Figure 7: Russia, Construction Output Value, by Sector (RUB Billion), 2014-2023

Figure 8: Russia, Construction Projects Pipeline, Projected Annual Spending by Stage (RUB Billion), 2018-2023

Figure 9: Russia, Construction Projects Pipeline, Value by Stage (RUB Billion)

Figure 10: Russia, Commercial Construction Output by Project Type (RUB Billion), 2014-2023

Figure 11: Russia, Commercial Construction Projects Pipeline, Value by Stage (RUB Billion)

Figure 12: Russia, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (RUB Billion), 2018-2023

Figure 13: Russia, Industrial Construction Output by Project Type (RUB Billion), 2014-2023

Figure 14: Russia, Industrial Construction Projects Pipeline, Value by Stage (RUB Billion)

Figure 15: Russia, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (RUB Billion), 2018-2023

Figure 16: Russia, Infrastructure Construction Output by Project Type (RUB Billion), 2014-2023

Figure 17: Russia, Infrastructure Construction Projects Pipeline, Value by Stage (RUB Billion)

Figure 18: Russia, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (RUB Billion), 2018-2023

Figure 19: Russia, Energy and Utilities Construction Output by Project Type (RUB Billion), 2014-2023

Figure 20: Russia, Energy and Utilities Construction Projects Pipeline, Value by Stage (RUB Billion)

Figure 21: Russia, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (RUB Billion), 2018-2023

Figure 22: Russia, Institutional Construction Output by Project Type (RUB Billion), 2014-2023

Figure 23: Russia, Institutional Construction Projects Pipeline, Value by Stage (RUB Billion)

Figure 24: Russia, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (RUB Billion), 2018-2023

Figure 25: Russia, Residential Construction Output by Project Type (RUB Billion), 2014-2023

Figure 26: Russia, Residential Construction Projects Pipeline, Value by Stage (RUB Billion)

Figure 27: Russia, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (RUB Billion), 2018-2023

Figure 28: Russia, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 29: Russia, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)

Figure 30: Russia, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 31: Russia, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

    Pricing

Discounts available for multiple report purchases.

reportstore@globaldata.com
+44 (0) 161 359 5813

Join our mailing list

Saved reports