Construction in Russian Market Outlook 2022
Synopsis
Construction activity in Russia was weak during the review period (2013–2017), as a result of depressed economic conditions, low oil prices and sanctions imposed by Western countries following Russia’s involvement in the Ukrainian crisis. Public expenditure cuts implemented by the government, coupled with weak investor confidence, led to reduced infrastructure construction activity.
Construction activity in Russia was weak during the review period (2013–2017), as a result of depressed economic conditions, low oil prices and sanctions imposed by Western countries following Russia’s involvement in the Ukrainian crisis. Public expenditure cuts implemented by the government, coupled with weak investor confidence, led to reduced infrastructure construction activity.
The industry is expected to recover over the forecast period
(2018–2022), however, and register positive growth supported by the
government’s effort to revitalize economic growth through investments in
residential, transport and energy infrastructure projects.
Preparations for the Fifa World Cup in Russia in June 2018
have helped to support the retail, and leisure and hospitality building
categories. The government estimates that over 2.0 million tourists will visit
the country during the event.
Downside risks to the forecast remain pertinent: the economy
is vulnerable to fluctuations in oil prices and western sanctions are expected
to remain in place for some time. Nevertheless, improving global and domestic
economic conditions are expected to support the industry’s expansion.
In real terms, the industry’s output value is expected to
post a forecast-period CAGR of 2.66% in 2022, compared to -3.06% during the
review period.
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Summary
Timetric’s Construction in Russia – Key Trends and Opportunities to 2022 report provides detailed market analysis, information and insights into the Russian construction industry, including:
Timetric’s Construction in Russia – Key Trends and Opportunities to 2022 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:
This report provides a comprehensive analysis of the construction industry in Russia. It provides:
• Historical (2013-2017) and forecast (2018-2022) 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 Timetric's standardized valuation and forecasting methodologies.
• Identify and evaluate market opportunities using Timetric's 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 strategy using Timetric's critical
and actionable insight.
• Assess business risks, including cost, regulatory and
competitive pressures.
• Evaluate competitive risk and success factors.
Key
Highlights
• Timetric expects the infrastructure construction market output to record a forecast-period CAGR of 7.98% in nominal terms, supported by the government’s effort to develop the country’s transport infrastructure. In December 2017, Russian Railways (RZD) announced plans to invest RUB580.0 billion (US$9.7 billion) in 2018 to upgrade and expand the country’s rail network. Furthermore, RZD plans to allocate RUB672.9 billion (US$11.1 billion) and RUB591.2 billion (US$9.7 billion) for the development of various rail infrastructure projects in 2019 and 2020 respectively.
• In September 2017, the government approved the strategy for the development of automotive exports until 2025. Under the new strategy, the government aims to increase the country’s automotive industry exports to RUB285.8 billion (US$4.9 billion) by 2025. This is expected to include the manufacturing of 240,000 cars every year until 2025 which in turn will support the industrial construction market over the forecast period.
• Timetric expects the infrastructure construction market output to record a forecast-period CAGR of 7.98% in nominal terms, supported by the government’s effort to develop the country’s transport infrastructure. In December 2017, Russian Railways (RZD) announced plans to invest RUB580.0 billion (US$9.7 billion) in 2018 to upgrade and expand the country’s rail network. Furthermore, RZD plans to allocate RUB672.9 billion (US$11.1 billion) and RUB591.2 billion (US$9.7 billion) for the development of various rail infrastructure projects in 2019 and 2020 respectively.
• In September 2017, the government approved the strategy for the development of automotive exports until 2025. Under the new strategy, the government aims to increase the country’s automotive industry exports to RUB285.8 billion (US$4.9 billion) by 2025. This is expected to include the manufacturing of 240,000 cars every year until 2025 which in turn will support the industrial construction market over the forecast period.
• Timetric expects the residential construction market to
retain its leading position over the forecast period, with a share of 37.4% of
the industry’s total value in 2022. In December 2017, the government allocated
RUB600.0 billion (US$10.3 billion) until 2022 as subsidized mortgage loans to
young families. According to the projections of the Agency for Housing Mortgage
Lending, the government’s initiative is expected to provide housing loans at
low interest rates to over 600,000 families, which is in turn expected to drive
the construction of new housing units on a 13.0 million m2 area by 2022.
Table of Contents
1 Executive Summary
2 Construction Outlook: At-a-glance
3 Latest News and Indicators
4 Key Drivers and Risks
4.1 Economic Performance
4.2 Political Environment
4.3 Demographics
4.4 Risk Profile
5 Construction Outlook
5.1 All Construction
5.1.1 Outlook
5.1.2 Project analytics
5.2 Commercial Construction
5.2.1 Outlook
5.2.2 Project analytics
5.3 Industrial Construction
5.3.1 Outlook
5.3.2 Project analytics
1 Executive Summary
2 Construction Outlook: At-a-glance
3 Latest News and Indicators
4 Key Drivers and Risks
4.1 Economic Performance
4.2 Political Environment
4.3 Demographics
4.4 Risk Profile
5 Construction Outlook
5.1 All Construction
5.1.1 Outlook
5.1.2 Project analytics
5.2 Commercial Construction
5.2.1 Outlook
5.2.2 Project analytics
5.3 Industrial Construction
5.3.1 Outlook
5.3.2 Project analytics
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