Russia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

Russia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

Summary

The Russian construction is expected to grow by 6.6% in 2023, reflecting ongoing growth momentum in the construction industry in spite of the challenging backdrop with Western sanctions imposed following Russia’s invasion of Ukraine in February 2022. According to the Federal State Statistics Service (Rosstat), the construction industry’s value-add grew by 10% year on year (YoY) in Q3 2023, preceded by Y-o-Y growth of 11.7% in Q2 and 7% in Q1 2023. However, the outlook for 2024 is gloomy, owing to continued Western sanctions, coupled with elevated construction costs and interest rates, a growing budget deficit, falling government revenues, and an exodus of skilled workers. In addition, with the price cap on Russian crude oil set by the Group of Seven (G7) the government’s oil and gas revenues plummeted by 41% YoY in the first nine months of 2023. Falling government revenue is likely to impact the progress of public infrastructure projects.

Over the remainder of the forecast period, GlobalData estimates the Russian construction industry to register an annual average growth rate of 3.9% from 2025-27, with government investment in manufacturing sector, infrastructure, residential and renewable energy projects. While trade with the West has decreased substantially this year, trade with China, India and North African countries could partially offset the gap in supply left by the reduction in Western imports. Growth will be supported by Russian President Vladimir Putin’s signing of free trade agreements with different countries. In December 2023, Russian President Vladimir Putin announced his plan to sign an agreement with the Eurasian Economic Union (EAEU) and Iran by the end of 2023 on the creation of a free trade zone. Previously, in August 2023, the President announced his plan to sign free trade agreements with North African countries, Algeria, Morocco, Tunisia and Egypt. In late June 2023, the Duma - which is the lower house of the Russian parliament - approved draft laws on the creation of Free Economic Zones (FEZ) in the Donetsk, Luhansk, Kherson and Zaporozhye regions of Russia and will be operational until 2050.

The 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 (2018-2022) and forecast (2023-2027) 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.