This publication keeps industry professionals current on activity and
conditions in the overall Russian construction market and the
non-residential, commercial, civil engineering and residential segments
of the market.
The report offers the latest market news and trends analysis,
macroeconomic developments and investment outlooks, gathered from a
diverse range of regional and international sources.
Forecasts for the period 2013-2016 are provided, along with full
profiles of companies leading the Russian construction market in size,
earnings and activity.
This report delivers business information on a well-rounded selection of topics, including
- Detailed descriptions of current conditions in all segments of Russian
- Reliable forecasts for all market segments to 2016
- The impact of trends on market growth, project selection and
labor and materials prices
- The competition: projects, finances and prospects of the largest
companies active in Russian construction
- Production: total residential units slated for completion by 2016.
This document answers key questions about current market conditions, such as
- What is the current value of the entire market? Of each main segment? How
are these numbers expected to change by 2016?
- How many construction companies are currently competing in the Russian
market? Which are their most noteworthy projects?
- In which direction will prices move in the months ahead?
- What is planned in terms of new road, railway and residential construction
projects by 2016?
- Overview of major construction initiatives to be implemented under
preparation for the 2018 FIFA World Cup
- Which developments are making market news in terms of regulation in
- Which are the most influential trends in the non-residential segment?
Did you know
- About 1.5tr (€35bn) will be spent to develop Sochi as a mountain
resort, including RUB 214bn (€4.9bn) on sporting venues for the 2014
- In Q3 2013, the industry's business confidence index reached its highest
level for five years.
- In 2012 cement production totalled 61.5 million tonnes, the highest level
seen since 1992.
- Only 41% of federal and 37% of regional roads in Russia meet regulatory
- About 21% of the fixed assets at hydroelectric power plants were put into
operation more than fifty years ago.
- Housing stock per capita in Russia is only 23.4 m2.
- Only 41% of the country's transmission lines and substations are within
useful life limits.
- Construction cost of a 5.9 km long Formula 1 circuit, which is being
developed at Sochi Olympic Park, is estimated at RUB 11bn (€255m).
Selected companies analysed in this report include
Adamant Holding, AFI Development, ARKS, Brisa, Crocus Group, DSK Avtoban,
Engeocom, Eurocement, KM Group, Knauf, Mostotrest, NPO Mostovik, O1
Properties, PIK Group, PNK-Group, Raven Russia, Renaissance Construction,
Renova Group, Russian Grids, RZhD, SGK-transstroyYamal, SK Most,
Stroygazconsulting, SU-155, Tashir Group, TPS Nedvizhimost, Transstroy,
Unitile Holding, Vinci, ZAO VAD.
This publication is a useful asset when
- Initiating new construction operations in the Russian market
- Expanding into a new segment
- Building a successful business strategy
- Engaging in mergers and/or acquisitions
- Conducting competition research
- Searching for reliable investment opportunities
- Calculating corporate market shares
- Estimating current and potential demand for building materials
- Compiling market reports for manager and shareholder use.
It is targeted to meet the informational requirements of
- Construction materials and machinery manufacturers
- Foreign and domestic construction companies involved in the Russian market
- Government agencies and embassies
- Academics, researchers and business consulting specialists
- Financial services specialists
- Business consultants, analysts and research specialists.
Extract from this report
- Deficient transport infrastructure in Russia will continue to urge federal
and local authorities to increase spending on transport infrastructure
construction projects across the country. In 2013, the World Economic Forum's
2013-2014 Global Competitiveness Report ranks Russia 93rd among 148 countries
in terms of the quality of overall infrastructure (86th out of 133 countries
in 2009). The quality of the country's roads took 136th position, down 18
places in four years; the quality of air transport infrastructure held 102nd
place; and the quality of port infrastructure took 88th. Only the quality of
railway infrastructure was placed higher at 31st.
- At the end of Q2 2013, quality retail GLA per 1,000 inhabitants reached
almost 110 m2 in Russia, significantly lower than the figures recorded in
most EU countries. In 2010 this parameter had expanded to 128 m2 in
Central Europe. The significant discrepancy between saturation levels in
shopping centre space in Russia and those in Europe highlights the huge
potential for the retail real estate market in Russia.
- Only slightly more than 22% of Russia's housing stock has been put on the
market since 1995. A significant share of housing has been in use for more
than 50 years and requires repair or extensive modernisation.
Market commentary by expert
Russia's construction industry in Russia struggled in the first half of 2013,
contracting year on year by1.9%. By September, the downward trend in
construction activity eased, and for the nine months a 1.1% drop in
construction output was recorded in the country. According to PMR estimates,
the market was dragged down solely by the civil engineering construction
sector. Russia's federal budget for 2013 was set based on a projected GDP
growth of 3.7%. However, according to the performances achieved in the first
three quarters, this year GDP is likely to expand by 1.8% at best.
Among the key factors behind this slowdown has been the poor performance in
investment activity. Russian authorities projected investment in fixed capital
to expand 2.5% in 2013, a figure unlikely to be achieved considering that in
the first three quarters of the year investment in fixed capital contracted by
1.4%. The decline in investment has partly come after many Russian large
companies scaled back their investment programmes for 2013. Furthermore, weak
macroeconomic performances have forced public authorities to slash this year's
projected spending on targeted state-run infrastructure development programmes.
Vitalie Iambla, Construction market Analyst