Construction in Russia - Key Trends and Opportunities to 2024

Construction in Russia - Key Trends and Opportunities to 2024

Summary

Russia’s construction industry has been severely affected by disruption caused by the COVID-19 pandemic. In the short term, construction activities in the country will be impacted by the restrictions imposed by the government to contain the spread of the disease. Downside risks for the construction industry not only include the worsening of the outbreak, but also declining oil prices. Major public-funded construction projects could be delayed or cancelled, as government revenues in the coming months will be affected by the fall in oil prices.

The strict lockdown measures imposed by the government to contain the spread of the virus have had negative economic and fiscal consequences. According to the Ministry of Finance, the federal budget deficit increased to RUB955.9 billion (US$14 billion) in the first half of 2020, compared to a surplus of RUB1.7 trillion (US$25.8 billion) in the same period in 2019.

Construction has been severely affected since the start of the virus outbreak; construction projects reportedly being delayed, and workers are being made redundant. While 42.2% of the mega infrastructure projects in the pipeline are in the execution stage, the prospects for progressing with the construction activities remain uncertain, as the country’s fiscal position will be weakened by government’s expansionary fiscal policy stance and the reduction in oil and gas revenues. In mid-May, the Russian finance minister, Anton Siluanov, said that the country’s revenues from oil and gas will be RUB3 trillion (US$39.5 billion) lower than previous estimates, due to weaker oil prices. However, the government plans to use reserves from the National Wealth Fund to finance its budget deficit. Prior to the COVID-19 crisis, the government had outlined plans last year to spend RUB6.3 trillion (US$96 billion) on the development of the country’s transport infrastructure during the period of 2019-2024.

Reflecting the disruptions caused by the pandemic, coupled with the weak outlook for economic growth, GlobalData forecasts the construction industry to shrink by 4.2% in 2020. The industry will recover, however, posting an average annual growth of 2.6% between 2021-2024

This 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 (2015-2019) and forecast (2020-2024) 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.


1 Executive Summary
2 Construction Industry: At-a-glance
3 Context
3.1. Economic Performance
3.2. Political Environment and Policy
3.3. Demographics
3.4. COVID-19 Status
4 Construction Outlook
4.1. All Construction
4.1.1. Outlook
4.1.2. Latest news and developments
4.1.3. Construction Projects Momentum Index
4.2. Commercial Construction
4.2.1. Outlook
4.2.2. Project analytics
4.2.3. Latest news and developments
4.3. Industrial Construction
4.3.1. Outlook
4.3.2. Project analytics
4.3.3. Latest news and developments
4.4. Infrastructure Construction
4.4.1. Outlook
4.4.2. Project analytics
4.4.3. Latest news and developments
4.5. Energy and Utilities Construction
4.5.1. Outlook
4.5.2. Project analytics
4.5.3. Latest news and developments
4.6. Institutional Construction
4.6.1. Outlook
4.6.2. Project analytics
4.6.3. Latest news and developments
4.7. Residential Construction
4.7.1. Outlook
4.7.2. Project analytics
4.7.3. Latest news and developments
5 Key Industry Participants
5.1. Contractors
5.2. Consultants
6 Construction Market Data
7 Appendix
7.1. What is this Report About?
7.2. Definitions
8 About GlobalData
8.1. GlobalData Construction
8.2. Disclaimer
8.3. Contact Us
List of Tables
Table 1: Construction Industry Key Data
Table 2: Russia, Key Economic Indicators
Table 3: Russia, Commercial Construction Output by Project Type (Real % Change), 2015-2024
Table 4: Russia, Top Commercial Construction Projects by Value
Table 5: Russia, Industrial Construction Output by Project Type (Real % Change), 2015-2024
Table 6: Russia, Top Industrial Construction Projects by Value
Table 7: Russia, Infrastructure Construction Output by Project Type (Real % Change), 2015-2024
Table 8: Russia, Top Infrastructure Construction Projects by Value
Table 9: Russia, Energy and Utilities Construction Output by Project Type (Real % Change), 2015-2024
Table 10: Russia, Top Energy and Utilities Construction Projects by Value
Table 11: Russia, Institutional Construction Output by Project Type (Real % Change), 2015-2024
Table 12: Russia, Top Institutional Construction Projects by Value
Table 13: Russia, Residential Construction Output by Project Type (Real % Change), 2015-2024
Table 14: Russia, Top Residential and Mixed-Use Construction Projects by Value
Table 15: Russia, Key Contractors
Table 16: Russia, Key Consultants
Table 17: Russia, Construction Output Value (Real, US$ Million)
Table 18: Russia, Construction Output Value (Nominal, RUB Million)
Table 19: GlobalData Construction Market Definitions
List of Figures
Figure 1: Eastern Europe, Construction Output (Real % Change), 2020
Figure 2: Russia, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Russia, COVID-19 Confirmed Cases
Figure 4: Russia, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2015-2024
Figure 5: Russia, Construction Output Value, by Sector (Real, US$ Million), 2015-2024
Figure 6: Russia, Construction Value-Add (RUB Billion, 2016 Constant Prices)
Figure 7: Russia, Investments in Fixed Capital (% Change, Year-on-Year)
Figure 8: Russia, Construction Activity Volume Index (% Change, Year-on-Year)
Figure 9: Russia, Number of Unemployed Registered at Bodies of State Employment Services
Figure 10: Russia, Construction Projects Momentum Index
Figure 11: Russia, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 12: Russia, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 13: Russia, Retail Trade Turnover (RUB Billion)
Figure 14: Russia, Wholesale and retail trade Value-Add (RUB Billion, 2016 Constant Prices)
Figure 15: Russia, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 16: Russia, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 17: Russia, Industrial and Manufacturing Production Index (% Change, Year-on-Year)
Figure 18: Russia, Manufacturing Value-Add (RUB Billion, 2016 Constant Prices)
Figure 19: Russia, Total Export (US$ Billion)
Figure 20: Russia, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 21: Russia, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 22: Russia, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 23: Russia, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 24: Russia, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 25: Russia, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 26: Russia, Federal Budget Expenditure on Healthcare (RUB Billion)
Figure 27: Russia, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 28: Russia, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: Russia, Real Estate Value-Add (RUB Billion, 2016 Constant Prices)
Figure 30: Russia, Residential Buildings Commissioned by Organizations (Million m2)
Figure 31: Russia, Volume of Extended Mortgage Loans (RUB, Billion)
Figure 32: Russia, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 33: Russia, Headquarters of Key Consultants (% of Total Project Pipeline)
Figure 34: GlobalData at a Glance

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