The analyst expects the Russian construction industry to record a real-terms growth of 1.8% in 2025, supported by the ease in interest rates, coupled with investments in energy and infrastructure projects. In September 2025, the local government of Saint Petersburg announced that it targets to increase fixed capital investments by 25.3% compared to 2020 levels. This will lead to higher investment in infrastructure projects, a rise in construction employment, and a direct boost to the demand for construction services. However, the prolonged war, lowering foreign trade, a decline in global oil prices, high inflation rates, and a weaker residential and industrial markets are anticipated to pose downside risks over the short term. According to Rosstat, the average industrial production index declined by 3.2% YoY in the first six months of 2025, while the average manufacturing production index declined by 4.2% YoY during the same period.
Over the remainder of the forecast period, the Russian construction industry is projected to record an annual average growth rate of 2.5% between 2026 and 2029, supported by investments in oil and gas, industrial, 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. To support this, the Ministry of Energy is implementing the Development of Energy strategy (2025-27). Under this strategy, the government will invest RUB176.5 billion ($1.8 billion) by 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. Apart from this, under the Development of Energy strategy, two power plants with a capacity of 250MW will be constructed in the country by 2027
Over the remainder of the forecast period, the Russian construction industry is projected to record an annual average growth rate of 2.5% between 2026 and 2029, supported by investments in oil and gas, industrial, 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. To support this, the Ministry of Energy is implementing the Development of Energy strategy (2025-27). Under this strategy, the government will invest RUB176.5 billion ($1.8 billion) by 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. Apart from this, under the Development of Energy strategy, two power plants with a capacity of 250MW will be constructed in the country by 2027
The Construction in Russia - Key Trends and Opportunities to 2029 (Q3 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
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
