Russia’s construction market in 2024: development trends and growth opportunities
Today, 16% of Russia’s able-bodied population is employed in the construction industry, contributing 13.4% to the country’s GDP
In 2023, 110.44 million m² of residential property was commissioned—7.5% more than in 2022. This marks an absolute record for the Russian construction industry. The total volume of construction work in 2023 reached RUB 15.1 trillion (+7.5%), while the turnover of construction organizations rose to RUB 13.45 trillion (+13.9%).
Record figures were also achieved in the residential housing segment. Last year, 59 million m² of housing was commissioned, reflecting a 3.5% increase from 2022. Russians spent more on construction (14%) and repair work (28%) than on anything else, apart from food.
Significant attention was given to infrastructure development in 2023. RUB 760 billion was allocated for the construction and reconstruction of infrastructure facilities, representing a 14.6% increase compared to 2022. This year, the goal is to maintain a similar level of funding with only a minimal decrease to RUB 756 billion.
Sales of building materials, household goods, and furniture also grew by 5-6%, reaching RUB 3.3 trillion in 2023. The following categories saw the highest growth:
- Building materials (+16%)
- Joinery (+12%)
- Tools (+10%)
- Flooring (+8%)
This increase in sales was driven by favourable mortgage conditions, rising demand for housing and communal construction, and increasing household incomes. Analysts forecast that sales will surpass RUB 3.5 trillion this year.
One of the key drivers of the construction market's development in 2024 is the implementation of large, long-term projects in various Russian regions. The volume of regional construction work in the first quarter of 2024 totalled RUB 2.58 trillion, reflecting a 3.5% increase compared to the same period in 2023. Overall, construction activity in multi-apartment housing, private homes, and industrial facilities continues to grow. This trend positively impacts the demand for construction materials, equipment, and tools.
Moreover, despite a 4.62% increase in the price of construction materials during the first half of 2024, nearly half of Russians (46%) have not abandoned their plans to improve their living conditions and intend to undertake cosmetic or major home repairs.
One of the opportunities for manufacturers and suppliers of building and finishing materials to increase their sales is to take part in the MosBuild, International Building and Interiors Trade Show, which is characterised by its high commercial potential.
The Spring 2024 exhibition was visited by 57,502 specialists from wholesale and retail organisations, construction and repair companies, architects and designers from 47 countries and 87 Russian regions. 83% of visitors were buyers, and the share of people influencing the decision to purchase products based on the results of the exhibition was 94%.
Most visitors to MosBuild 2024 were interested in building materials (51%), sanitaryware (33%), ceramics (31%), doors and locks (29%) and flooring (29%).
Take the opportunity to present your products to an interested audience of visitors at MosBuild 2025, the International Building and Interiors Exhibition, which will take place from 1-4 April 2025 in Moscow (Crocus Expo IEC)
BOOK A STAND*Sources: vedomosti.ru, sber.pro, realty.rbc.ru, iz.ru, secrets.tinkoff.ru, nafi.ru