The Russian construction industry is expected to shrink in real terms by 5.2% in 2026 and 1.8% in 2027, owing to the ongoing economic uncertainty in the country caused by the Ukraine-Russia war and Middle Eastern conflict, increasing labor shortages, rising construction material costs, spending cuts to fund the war and a sluggish residential building activity. According to the Federal State Statistics Service (Rosstat), Russia’s average construction activity volume index fell by 14.5% year-on-year (YoY) in the first four months of 2026, following a marginal annual decline of 0.7% in 2025. Furthermore, in early 2026, the Russian government significantly reduced state mortgage subsidies, resulting in a setback for the country's residential construction sector, which has caused numerous projects to be canceled or delayed. Moreover, the average manufacturing production index declined by 3.5% YoY in the first four months of 2026, preceded by an annual decline of 5.1% in 2025.
Over the remainder of the forecast period, the Russian construction industry is expected to rebound and record an annual average growth of 3% between 2028 and 2030, supported by increase in investments in industrial, transport infrastructure and renewable energy projects. To drive growth in the country’s manufacturing sector, the Russian Ministry of Industry and Trade is targeting to build approximately 100 industrial parks in the country by 2030. In April 2026, a Russian mining company, Reale Engineering Invest commenced the development of the Velyko-Tokmak (Bolshoy Tokmak) manganese deposit in Russia occupied Zaporizhzhia Oblast. Reale Engineering Invest estimated that the Velyko-Tokmak deposit holds approximately 1.7 billion tons of manganese deposits. Growth over the forecast period will also be driven by Russia’s updated six-year road infrastructure development plan for 2026-2031. The Russian government is planning to invest RUB9.1 trillion ($101.5 billion) to build and upgrade 2,000km of roads in the country by 2031, along with building 50 bypasses.
Over the remainder of the forecast period, the Russian construction industry is expected to rebound and record an annual average growth of 3% between 2028 and 2030, supported by increase in investments in industrial, transport infrastructure and renewable energy projects. To drive growth in the country’s manufacturing sector, the Russian Ministry of Industry and Trade is targeting to build approximately 100 industrial parks in the country by 2030. In April 2026, a Russian mining company, Reale Engineering Invest commenced the development of the Velyko-Tokmak (Bolshoy Tokmak) manganese deposit in Russia occupied Zaporizhzhia Oblast. Reale Engineering Invest estimated that the Velyko-Tokmak deposit holds approximately 1.7 billion tons of manganese deposits. Growth over the forecast period will also be driven by Russia’s updated six-year road infrastructure development plan for 2026-2031. The Russian government is planning to invest RUB9.1 trillion ($101.5 billion) to build and upgrade 2,000km of roads in the country by 2031, along with building 50 bypasses.
The Construction in Russia - Key Trends and Opportunities to 2030 (Q2 2026) 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.
Scope
This report provides a comprehensive analysis of the construction industry in Russia. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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
