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The Future of Construction in Russia
World Market Intelligence, Feb 2010, Pages: 83
This report is the result of WMI’s extensive market, company and deals research covering the Russian construction market. It provides detailed segmentation of both historic and forecast construction sales, segmented to market and category level; analysis of the leading companies in the Russian construction market and analysis of the key financial deals involving construction players in Russia.
Construction Market Trends
- Construction growth slowed: Construction is one of the most dynamic sectors in Russia and experienced strong growth during the period 2004-07. However, in 2008, growth in the Russian construction industry slowed due to the global financial crisis.
- Sochi Winter Olympics in 2014: Preparations for the Sochi Winter Olympics in 2014 and the Asia Pacific Economic Cooperation (APEC) Summit to be held in Vladivostok in 2012 have provided a major boost to construction activities in Russia. These two events are driving huge investments in Sochi and Vladivostok for construction and modernization of roads, railways, tunnels, airport facilities, power infrastructure as well as construction of sports venues.
- Retail buildings to derive commercial market: Retail buildings construction has been driven by the growing retail sector in Russia and retail buildings construction is expected to drive commercial construction in coming years. With the growing personal income of Russians, the construction of new retail premises has increased dramatically. The huge opportunities in this market are attracting commercial real estate investors who are targeting double digit annual returns.
- Industrial and Commercial Construction to prosper: Industrial and commercial construction are expected to perform comparatively well over the period 2009-2014. The industrial market is expected to witness the highest compounded annual growth rate (CAGR) of 17.0% over the same period.
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