The construction industry in Russia is expected to grow at a compound annual growth rate (CAGR) of 2.52% from 2016 to 2020, indicating a recovery after shrinking by 2.19% during 2011-2015, according to a report by Timetric. The growth will be led partly by new investments in railway.

Titled ‘Construction in Russia – Key Trends and Opportunities to 2020‘, the report highlights how the construction industry will be impacted by investments in the railway sector, following recent decreases due to currency depreciation, Western sanctions, insufficient foreign investment, volatile global oil prices, and an unfavourable business environment.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

To improve and modernise the country’s infrastructure, the government has announced plans to expand high-speed railways. Major Russian cities including Moscow, St. Petersburg, Samara, Krasnodar, and Novosibirsk will be linked via the construction of 11,000km of lines by 2030. The projects will be implemented through public-private partnership (PPP).

In addition, the authorities plan on investing RUB11.6t ($364.4bn) to develop the rail, road, sea, and inland-water infrastructure, according to its Development of Transport System of Russia (2010-2020) programme. These infrastructure will also receive an impetus from the government under the Socio-Economic Development 2020 programme.

Russian authorities are also focusing on affordable housing, institutional construction and leisure areas, as well as the hospitality segment to boost the country’s construction industry.

However, the Timetric report cautions that the industry will shrink further by approximately 1% in 2016 before it starts to regain momentum. The protraction of adverse conditions may also dampen the expected recovery during the initial part of the forecast period.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.