This publication examines the state of Russia's construction market as of H2 2015 in terms of value, current and planned production, earnings and prospects for the market's major players through the year 2021. It offers a convenient as well as comprehensive source of data reflecting the value of each segment and expert analysis of market conditions and influential trends.
The report also reviews a list of major upcoming construction projects and the predicted effects of new regulations on construction market growth in Russia.
Evaluate key components of Russia's construction sector...
- Benefit from detailed analysis of trends and impacts on costs, employment levels, market growth and sales and prices of construction materials and machinery
- Market value - assess the data representing the value of the Russian construction market and each of its segments: residential, non-residential and civil engineering
- Prospects for the future, as detailed in the forecasts prepared by PMRs team of highly experienced analysts.
Locate direct answers to key market questions...
- How many construction companies are currently participating in the Russian market?
- What are the largest projects currently in the planning stages in Russia? Which are related to the 2018 FIFA World Cup?
- What does the future hold in terms of new regulatory developments? What effects will they exert upon growth in the Russian construction sector?
- What are the details on planned projects for the residential and infrastructure segments of Russian construction?
- What is the value of the entire construction sector in Russia as of 2015 H2?
- What are the values of the residential, non-residential and civil engineering segments of the market? How are these expected to change during the period 2016-2021?
Companies in this report...
ARKS, Crocus Group, Dyckerhoff, Eurocement, GK Avtodor, HeidelbergCement, Henkel, Holcim, Knauf, Mostotrest, O1 Properties, Raven Russia, Renaissance Construction, Rockwool, Saint-Gobain, Stroygazconsulting, Stroytransgaz, SU-155,Tashir Group, Technonicol, TPS Nedvizhimost,Transstroy, Uralita Group, Vinci, YIT Group
Did you know...
- In 2014 cement production totalled 68.5 million tonnes, the highest level seen since 1992.
- In early 2015 only 54% of federal and 37% of regional roads in Russia met regulatory compliance requirements.
- Housing stock per capita in Russia very likely to expand to only about 24.5 m2 in 2015.
- 83.3 million m2 of residential space was commissioned in Russia in 2014, the highest figure ever.
- At the beginning of 2015, all hotels and similar accommodation facilities located in Saransk and its suburbs, one of the cities to host the 2018 World Cup matches, had a combined capacity of less than 800 rooms.
- In mid-2015, with 517 m2 of GLA per 1,000 inhabitants Samara was the leading city with over 1 million residents in terms of shopping space saturation in Russia.
This document was prepared for...
- International and domestic construction companies active on or interested in the Russian construction market
- Research, analysis and business consultancy firms
- Banks and other providers of financial services
- Construction machinery and building materials manufacturers
- Government agencies and embassies.
The report is a vital asset when...
- Preparing reporting documents for corporate use
- Conducting competitive research
- Beginning new business operations in Russian construction
- Estimating upcoming demand for materials and machinery
- Searching for appropriate merger/acquisition candidates
- Expanding current operations
- Locating suitable investment opportunities on this market.
Extract from this report
- Preparations for the 2018 FIFA World Cup, which should provide some support to the hotel construction market and the development of transport infrastructure in 2016 and 2017, regardless of the overall progress in the Russian economy.
- Only 72% of the country's housing stock has access to municipal wastewater networks, and 77% of this to the centralised water supply, with 65% connected to the natural gas supply network; only 64% of the housing stock has access to the municipal hot water supply infrastructure.
- Capital investments in the power industry will continue to decline in the next few years, mostly because of the substantial oversupply in installed capacity and weak fundamentals for growth in consumption in the near future. Oversupply is estimated to exceed 50 GW, which is more than 20% of the country's existing generation capacity.
Market commentary by expert
"According to Rosstat, the number of new homes registered in Russia between January and August 2015 rose by 12% year on year to 590,000, the most substantial amount during the period in question in the past two decades. The total floor space of residences listed in official records over the first eight months of 2015 increased by about 10% to 44.8 million m2, again the highest figure since 1990. However, the notable increase in home registration in Russia, regardless of the sharp deterioration of macroeconomic conditions since mid-2014, activity must be assessed cautiously, as it consists to an important extent of dwellings completed in late 2014 and 2015, along with many residential properties completed a long time ago but listed in official records mostly in Q1 2015 in accordance with Federal Law No. 93-FZ of 30 June 2006, entitled "On the simplification of the registration rights of property ownership".
According to the Federal Service for State Registration, Land Registration and Cartography, in H1 2015 approximately 163,512 detached houses were listed in official records in Russia based on the "dacha amnesty" edict, and this is about 36,634 more buildings (+28.9% year on year) than the number recorded in the corresponding period of last year. This expansion most likely contributed an extra 5 million m2 of residential space. At the same time, according to Rosstat, the total floor space of detached houses of individual builders listed in official records in Russia in H1 2015 was 4.6 million m2 more than in H1 2014. From this calculation it is safe to assume that the 10% advance in the total area of detached houses registered by individual investors in Russia between January and August 2015 in year-on-year comparison was achieved exclusively because of "dacha amnesty" properties, which are typically houses completed years ago but officially registered only recently."
Vitalie Iambla, Construction Analyst, PMR