Russian construction recovery continues
By Helen Wright22 May 2012
The value of construction projects completed in Russia during the first quarter increased 5.2% year-on-year to RUB793.9 billion (€20 billion), according to economic research company PMR.
However, the crisis in Europe and global economic uncertainty have prompted some companies in Russia to reconsider or postpone their investment plans, with the result that construction activity has not been as robust as it could have been if the global economic environment been more favourable.
Nevertheless, PMR said the country's construction industry was continuing to recover, driven by large, complex projects, including preparations for the 2014 Sochi Winter Olympics, the 2013 Kazan Universiade, the 2016 World Hockey Championship and the 2018 FIFA World Championship.
Other large, long-term projects include the construction of the Vostochny Kosmodrome spaceport in the far east of Russia, which has just begun and is due to be completed in 2020, the modernisation and development of infrastructure in the Northern Caucasus from now until 2025, and the Energy Industry Modernisation programme through to 2020.
PMR identified six Russian government programmes and mega-projects worth almost US$ 1 trillion, and said there were many more opportunities for construction companies in Russia in terms of smaller projects and tenders across the country.
In order to address the extensive needs of the population in terms of improvements in living standards, the Russian government is also implementing a residential construction support programme - the 2011 to 2015 housing programme, which follows the housing 2002 to 2010 project.
According to PMR , the programme plans a 50% increase in annual housing construction levels, to 90 million m2, by 2015. Beyond this programme, in 2016, residential construction levels should reach 100 million m2, and this is expected to increase to 140 million m2 in 2020.
PMR said the Russian authorities promised that 2012 would see 67 million m2 of housing built, almost 3 million m2 more than the record 2008 figure. Indeed, in the first three months of the year, 111,800 new housing units, with combined floor space of 9.8 million m2, were built in Russia, a 5.7% increase in comparison with the first quarter of 2010.