Market insights – around the globe

Our team of economists have worked closely with our local experts to analyse an expansive cost dataset to provide insight into how the construction industry is performing. Use the filter below to access the full data breakdown for the individual market of your choice.

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Russia - Moscow

1 Economic outlook

Growth returns, but low productivity persists

Russia is slowly rising from recession supported by stronger oil prices and low inflation. Unemployment is low at 5 percent, but about 10 percent among construction workers. Western sanctions over Crimea are likely to remain in place, limiting foreign investment and access to Western funds.

2 Markets and trends

Construction output is expected to increase moderately in 2018. The sector is hoping to benefit from major housing projects and final preparations for the 2018 World Cup. Demand for housing is rising with greater access to housing loans. Meanwhile, local governments, in advance of the World Cup, are working on urban development projects, such as the renovation of streets, squares, parks and other public spaces.

There are major infrastructure projects, including the Turkish Stream gas pipeline to Turkey and the high-speed train line between Moscow and Kazan, work is expected to start this year.

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Key Facts
Tendering: Cold
Market: Staying the same
Cost escalation 2017–18: 4.0%
Cost escalation 2018–19: 4.0%
Contractor’s margin: 7.0%
Preliminaries: 8.0%
Location factor (USD): 48.4
PPP coefficient: 35.9

 

3 Future outlook

The construction sector is dogged by low productivity and a changing demography is leading to a declining labour force with more people retiring than youngerpeople joining the workforce. The government has plans to attract more foreign skilled labour to meet the shortages and improve competition in the labour market. In the long term, government is investing in education and trying to implement new technologies.

 

 


This content is part of the International construction market survey 2018

Go back to the main ICMS 2018 page