Construction industry in Russia - statistics & facts
In the past years, the Russian construction industry faced such challenges as increasing material costs, fluctuating commissioning growth rates, as well as COVID-19-related setbacks. Nonetheless, the market, dominated by private organizations in terms of the volume of construction works, kept growing despite the adversity. Furthermore, Russia was the second-leading importer of construction worldwide after China.
The city of Moscow accounted for the largest area of multi-apartment residential building construction, followed by the Moscow Oblast and the Krasnodar Krai. The Samolet Group is the leading apartment building developer by area under construction, followed by the PIK Group and the LSR Group.
The Russian construction industry continued to increase the number and area of commissioned buildings in 2023. However, given the fact that most of these projects were planned in the years before an increase in construction costs and the Western sanctions on Russia over the war in Ukraine. Thus, the impact of these factors might only be seen in the following years.
Impact of the war in Ukraine on construction in Russia
Western countries imposed export restrictions on some construction materials to Russia, while several foreign companies, such as the Finnish elevator manufacturer Kone, suspended operations in the country. Russia heavily depended on imports of several building materials, such as escalators. Furthermore, Russian imports of construction machinery were increasing before 2022, except in 2020. Therefore, construction companies were expected to switch to domestic alternatives and imports from Asia and the Middle East, while investment in construction projects nationwide was projected to decrease due to the sanctions as well as an increase in material prices.Residential construction
Over 110 million square meters of housing were built in Russia in 2023, with the amount of commissioned individual houses exceeding that of apartment blocks. Overall, the volume of residential construction grew by over 7.5 percent in Russia in 2023, with the highest increase recorded in the Far Eastern Federal District.The city of Moscow accounted for the largest area of multi-apartment residential building construction, followed by the Moscow Oblast and the Krasnodar Krai. The Samolet Group is the leading apartment building developer by area under construction, followed by the PIK Group and the LSR Group.
Non-residential construction
Since 2010, the annual size of non-residential construction works has risen notably. In 2023, around 36 million square meters of non-residential buildings were constructed nationwide, having increased from the year before. Commercial and agricultural buildings account for the largest share in the Russian non-residential construction market.The Russian construction industry continued to increase the number and area of commissioned buildings in 2023. However, given the fact that most of these projects were planned in the years before an increase in construction costs and the Western sanctions on Russia over the war in Ukraine. Thus, the impact of these factors might only be seen in the following years.
