The Russian construction industry is projected to slow down in 2025. Indeed, it is forecasted to grow at a marginal rate of 0.8% in 2025, after registering a growth of 4.2% in real terms in 2024. This slowdown is attributed to several factors, including high construction material prices, rising inflation, higher interest rates, prolonged war with Ukraine, which is draining the government’s budget, and a weaker residential construction sector. In December 2024, the government approved a RUB11.1 trillion ($113.2 billion) defence budget for 2025, allocating 32.5% of total government spending, surpassing spending on education, healthcare, social policy, and the national economy combined.
Over the remainder of the forecast period, the construction industry is expected to record an annual average growth rate of 2.5% between 2026 and 2029, supported by increasing investments in oil and gas, transport infrastructure, and renewable energy projects coupled with governments plan to increase the renewable energy capacity in Russia from 6.6GW in 2024 to 18GW by 2035. In May 2025, Unigrin Energy, a Russian energy company announced a plan to construct a 650MW solar power plant in the Amur Region with an investment of RUB65 billion ($662.8 million) by 2027. Under the airport infrastructure modernization program, the Russian government plans to invest RUB381 billion ($3.9 billion) for the upgradation and modernization of 129 airfields across the country by 2030.
Over the remainder of the forecast period, the construction industry is expected to record an annual average growth rate of 2.5% between 2026 and 2029, supported by increasing investments in oil and gas, transport infrastructure, and renewable energy projects coupled with governments plan to increase the renewable energy capacity in Russia from 6.6GW in 2024 to 18GW by 2035. In May 2025, Unigrin Energy, a Russian energy company announced a plan to construct a 650MW solar power plant in the Amur Region with an investment of RUB65 billion ($662.8 million) by 2027. Under the airport infrastructure modernization program, the Russian government plans to invest RUB381 billion ($3.9 billion) for the upgradation and modernization of 129 airfields across the country by 2030.
The Construction in Russia - Key Trends and Opportunities to 2029 (Q2 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