Construction Projects In Russia. The Basics

The construction industry in Russia is rapidly recovering from the COVID-19 crisis. Already in the first quarter of 2021, business activities in this sector reached the "pre-pandemic" level.

According to the CBRE report, in the nine months of 2021, investments in real estate in Russia amounted to 281 billion rubles, which is the highest level in the entire history of the Russian real estate market¹.

This increase is particularly notable in residential realty. Favorable factors for this were (i) the demand growth against the Russian Central Bank monetary policy and (ii) the state preferential mortgage program.

Investments in commercial realty still lags significantly behind the residential one, which is primarily due to the continuing effects of the pandemic. Nevertheless, the positive trend in the construction in general gives grounds for optimism regarding the prospects of this sector.