The analyst expects the Russian construction industry to rise in real terms by 1.7% in 2025, then to decline by 1.7% in 2026 and 0.4% in 2027, due to the effect of a prolonged Russia-Ukrainian war, lowering foreign trade, a decline in global oil prices, with added volatility from the recent US incursion into Venezuela, high inflation rates, and a weaker residential and industrial markets. According to the Federal State Statistics Service (Rosstat), the average industrial production index declined by 4.1% year on year (YoY) in the first ten months of 2025, while the average manufacturing production index declined by 5.8% YoY during the same period. Furthermore, the construction industry’s value-add registered slow growth of 1.4% YoY in Q3 2025, compared to growth of 2.7% YoY in Q2 and 7.3% YoY in Q1 2025, according to Rosstat.
Over the remainder of the forecast period, the Russian construction industry is projected to record an annual average growth rate of 2.7% between 2028 and 2029, supported by investments in oil and gas, industrial, transport infrastructure, and renewable energy projects. The government plans to raise the renewable energy capacity in the country from 6.6GW in 2024 to 18GW by 2035. Also, the Ministry of Energy, under the Development of Energy strategy (2025-27), plans to invest RUB176.5 billion ($1.8 billion) 2027. Of the total, RUB91.2 billion ($930 million) will be invested to improve the electricity grid, and RUB29.2 billion ($297.8 million) for the construction of liquefied Natural Gas (LNG) complexes and oil and gas infrastructure by 2027. Recently, in November 2025, Yekaterinburg Mayor Alexey Orlov approved the 2026-30 Municipal Program for Urban Development Management, aiming to ensure balanced and sustainable city growth. The plan focuses on mass housing, non-residential construction, and improving architectural quality, while maintaining a comfortable scale in existing areas. It includes developing street and road networks, unified urban design guidelines, and upgrading older residential zones to modern standards. Growth will also be supported by the road activity plan for 2025-30, approved earlier in March 2025, Under which, the government aims to construct and renovate more than 3,700km of highways, including 1,900km of federal highways and 1,7000km of regional roads, and also construct 50 bypasses with a total investment of RUB9.2 trillion ($93.8 billion) by 2030.
Over the remainder of the forecast period, the Russian construction industry is projected to record an annual average growth rate of 2.7% between 2028 and 2029, supported by investments in oil and gas, industrial, transport infrastructure, and renewable energy projects. The government plans to raise the renewable energy capacity in the country from 6.6GW in 2024 to 18GW by 2035. Also, the Ministry of Energy, under the Development of Energy strategy (2025-27), plans to invest RUB176.5 billion ($1.8 billion) 2027. Of the total, RUB91.2 billion ($930 million) will be invested to improve the electricity grid, and RUB29.2 billion ($297.8 million) for the construction of liquefied Natural Gas (LNG) complexes and oil and gas infrastructure by 2027. Recently, in November 2025, Yekaterinburg Mayor Alexey Orlov approved the 2026-30 Municipal Program for Urban Development Management, aiming to ensure balanced and sustainable city growth. The plan focuses on mass housing, non-residential construction, and improving architectural quality, while maintaining a comfortable scale in existing areas. It includes developing street and road networks, unified urban design guidelines, and upgrading older residential zones to modern standards. Growth will also be supported by the road activity plan for 2025-30, approved earlier in March 2025, Under which, the government aims to construct and renovate more than 3,700km of highways, including 1,900km of federal highways and 1,7000km of regional roads, and also construct 50 bypasses with a total investment of RUB9.2 trillion ($93.8 billion) by 2030.
The Construction in Russia - Key Trends and Opportunities to 2029 (Q4 2025) 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.
Report Scope
This report provides a comprehensive analysis of the construction industry in Russia. It provides:
- Historical (2020-2024) and forecast (2025-2029) 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 our 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 business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
