Table of contents:

1. Methodology

2. Executive summary

3. Macroeconomic overview

• Gross domestic product
• Investment
• Inflation and exchange rates

4. Construction market overview

• Introduction
• Construction output
• Construction output by region
• Market forecast
• Employment and wages
• Construction companies
• Business confidence in construction
• Taxes
• VAT and CIT
• Land tax
• Land tax rates in Moscow
• Effective tax rate in construction
• Prices in construction
• Building materials
• Market overview
• Production
• Prices
• Cement market

5. Civil engineering

• Overview
• Road network
• Planned projects
• Public-Private Partnership in Russia
• Railroad network
• Major projects
• Underground network
• Airports
• Overview
• Major projects
• Energy
• Natural resources
• Electricity production and consumption
• Gas and oil extraction
• Pipelines
• Electricity

6. Non-residential construction

• Introduction
• Commercial property market overview
• Office property
• Retail property
• Warehouse property
• Hotels

7. Residential construction

8. Housing stock
• Construction of housing
• Residential construction in regions
• Individual residential construction
• Repair and renovation
• Housing construction costs
• Housing prices and sales

9. Company profiles

10. Appendix – Investing technicalities

11. List of graphs

12. List of tables

13. About PMR

14. Contact PMR

List of graphs and Tables:

List of graphs

1. GDP growth in Russia (%), 2000-2011
2. Total floor space of residential space completed in Russia (million m2 and %), 2001-H1 2008
3. Construction output in Russia (€ bn and y-o-y growth), 2004-H1 2008
4. GDP growth in Russia (%), 2000-2011
5. Fixed capital investment in Russia (%, y-o-y), Q1 2006-Q2 2008
6. Fixed capital investment in Russia (%, y-o-y), 2004-2011
7. Foreign direct investment in Russia ($ bn), 2005-2011
8. Consumer price index in Russia (%, December to December), 2000-H1 2008
9. EUR/RUB and USD/RUB exchange rates, 2006-2008
10. Construction output in Russia (€ bn and y-o-y growth), 2004-H1 2008
11. The value of construction work contracts signed and other construction orders (RUB bn), January 2007-August 2008
12. Backlog of orders in the construction sector, 2006-2008
13. Construction output in January-December 2007 (RUB bn), in best performing subjects of Russian Federation
14. Change in construction output in January-December 2007 (y-o-y), by subjects of Russian Federation
15. Construction output in January-June 2008 (RUB bn), in best performing subjects of Russian Federation
16. Change in construction output in January-June 2008 (y-o-y), by subjects of Russian Federation
17. Construction output growth in Russia (%, y-o-y), 2006-2011
18. Construction output breakdown in Russia (%), by segments, 2007-2011
19. Number of employed in construction industry in Russia (’000), 2005-2007
20. Average monthly wages in Russia, by industries (€), 2006-2007
21. Number of construction companies in Russia, 1990-2006
22. Changes in the index of business confidence in the construction industry in Russia (%), 2005-2008
23. Average capacity use rate in the Russian construction industry (%), 2000-2008
24. Main barriers to doing business in the Russian construction sector (% of all construction enterprises), Q4 2007-Q2 2008
25. Producer price indices in construction in Russia (%, December to December), 1997-2007
26. Production of building materials and machinery in Russia (y-o-y change), 2
27. and H1 2008
28. Inflation in building materials in Russia (y-o-y), July 2007-July 2008
29. Production of cement in Russia (million tons), 1970-H1 2008
30. Cement market volume in Russia (million tons), 2001-2007
31. Technical and economic indicators of cement production in Russia, 1970-2006
32. Density of paved public roads in Russia’s federal districts (km/1,000 km2), 2000-2007
33. Number of civil airports in Russia, 1992-2007
34. Investment in airport expansion and development in Russia, 2000-2006
35. Electricity generation in Russia (billion kWh), by source; share in total electricity generation, 2007
36. Electricity consumption forecast up to 2020
37. Office, shopping centre and logistics property yields in Moscow and St. Petersburg, H1 2008
38. Office space supply in Moscow (million m2), 2000-2008
39. Breakdown of demand for office space in Moscow, 2007
40. Office space supply in St. Petersburg, by class (’000 m2), 2005-H1 2008
41. Breakdown of demand for office space in St. Petersburg, H1 2008
42. Office rents in St. Petersburg ($/m2/month), 2005-H1 2008
43. Shopping centre area in Moscow (’000 m2), 2001-2008
44. Retail space supply in St. Petersburg (’000 m2), 2000-2008
45. Breakdown of operational retail facilities by total area, year-end 2007
46. Warehouse area in Moscow (million m2), 2002-2008
47. Breakdown of demand for warehouse space in Moscow, 2008
48. Breakdown of demand for warehouse space in St. Petersburg, H1 2008
49. Total hotel room stock in Moscow (number of rooms), 2004-Q1 2008
50. Average price per room in Moscow hotels ($), 2004-2008
51. Total hotel room stock in St. Petersburg, 2005-H1 2008
52. Per capita housing space in Russian federal districts (m2/capita), 2000 and 2007
53. Share of dilapidated housing in total housing stock in Russia, by federal districts (% of total), 1995, 2000 and 2006
54. Total floor space of residential space completed in Russia (million m2 and %), 2001-H1 2008
55. Total number of housing units built in Russia (’000 units and %), 2002-H1 2008
56. Average size of housing units commissioned in Russia, including those built by individual builders (m2), 1995 and 2000-2007
57. Construction of housing units in Russia, by number of rooms (% share), 2000-2007
58. Residential construction in Russia, by leading regions, 2007
59. Total floor space completed in leading regions of Russia (’000 m2 and y-o-y growth), H1 2008
60. Total floor space of detached houses built by population in Russia (million m2 and %), 2001-H1 2008
61. Total number of detached houses built by individuals in Russia (’000 units and %), 2001-H1 2008
62. Individual construction of housing space as proportion of total housing space completed in Russia, 1996-H1 2008
63. Individual construction of housing space as proportion of total ousing space completed in Russia’s federal districts, H1 2008
64. Individual builders’ funds in Russia (RUB bn), 1999-2007
65. Services of repair and construction of residential and other buildings rendered to population (RUB bn and y-o-y growth), 2005-2007
66. Housing space repaired or renovated in Russia (million m2), 1995 and 2000-2007
67. Average prices of dwellings on the primary and secondary market in Russia (RUB, end of period), 1998-H1 2008
68. Increase in average prices of dwellings on the primary and secondary market in Russia (%, end of period to the end of the preceding year), 1998-H1 2008

List of tables

1. Real GDP growth in Russia, by industry (%, y-o-y), 2005-Q1 2008
2. Contribution to GDP of various sectors of the economy in Russia (% of total), 2005-Q1 2008
3. Basic indicators of economic development in Russia (%, y-o-y), 2006-H1 2008
4. Breakdown of fixed capital investment in Russia (%), 1998-2007
5. Breakdown of fixed capital investment in Russia, by federal districts (%), 2007
6. Number of active construction companies in Russia, by form of ownership, 2000-2006
7. Construction companies with up to 100 employees in Russia as a percentage of the total number of companies, 2000-2006
8. Categories of construction company operations in Russia, Q2 2008
9. The budget for the programme “Modernisation of the Russian Transport System” (RUB m), 2008-2010
10. Assessments of future changes in the major indicators which describe the activities of construction companies in Russia, Q2 2008
11. Capacity use rate of construction companies, by company size, Q2 2008
12. The number and production capacity of new facilities producing building materials in Russia launched in 2007
13. Production of basic building materials in Russia, 2006-2008
14. Increase in producer prices for selected building materials in Russia, June 2008
15. Producer prices for selected building materials in Russia, June 2008
16. Average prices of basic building materials purchased by construction companies in Russia (RUB, end of year), 2000-2007
17. Budget for the programme “Modernisation of the Russian Transport system” (RUB m), 2008-2010
18. Length of transport routes in Russia (recorded at the end of each year; ‘000 km), 1992-2007
19. Commissioning of hard-surface motor roads in Russia, 2006-2007
20. Projects scheduled as part of the federal program, Development of Russian Transport System 2010-2015. sub-programme: Automobile Roads 55-
21. Expenditure required for the implementation of the 2010-2015 road development programme in Russia (RUB m), 2010-2015
22. Target indicators of the 2010-2015 road development programme in Russia (end of the year), 2009-2015
23. Main PPP projects in Russia
24. PPP participant’s benefits
25. The major projects planned in the Railway Development Strategy in Russia, up to 2030
26. Airport development projects to be completed in Russia during the period 2008-2012
27. Sources of finance for RAO UES of Russia Investment Programme (RUB m), 2008-2012
28. Value of thermal power plant projects in Russia (RUB m) to be implemented within the framework of the Investment Programme for 2008-2012
29. The list of hydroelectric stations projects to be implemented by the company HydroOGK under the Investment Programme (RUB m), 2008-2012
30. Investment programme of the FCK UES (RUB m), 2008-2012
31. Non-residential buildings completed in Russia, 2006-2007
32. Non-residential buildings completed in Russia: total number and floor space, 2004-2007
33. Major office projects completed in Moscow
34. Key office projects completed in St. Petersburg, H1 2008
35. Selected office projects to be completed in St. Petersburg by the end of 2008
36. Major retail facilities opened in Moscow, H1 2008
37. Major retail facilities to be opened in Moscow, H2 2008
38. Rental rates in Moscow’s shopping centres, Q1 2008
39. Major warehouse projects put into operation in Moscow area, H1 2008
40. Major warehousing projects planned for completion in Moscow area, H2 2008
41. Major warehousing projects planned in Moscow area announced in H1 2008
42. Rental rates in the Moscow Province warehouses, depending on distance to the MKAD ($/m2/year), H1 2008
43. Hotel segmentation in St. Petersburg, H1 2008
44. Housing supply in Russia (millions m2), 1995-2006
45. Living standards in Russian housing stock, 1995 and 2006
46. Residential construction in Russia by ownership type, 1995, 2000, 2006 and 2007
47. Residential construction in cities and rural areas of Russia, 2007
48. Average actual construction cost of 1 m2 residential space in Russia, 2004-2007
49. Average prices of residential units on the primary market in Russia (end-year, RUB/m2), 1998-2007
50. Average prices of residential units on the secondary market in Russia (end-year, RUB/m2), 1998-2007
51. Increase in average prices of residential units on the primary market in Russia (%, end-year to end-year), 1998-2007
52. Increase in average prices of residential units on the secondary market in Russia (%, end-year to end-year), 1998-2007
53. Average prices of residential units on the primary and secondary markets in selected Russian regions (RUB/m2), Q2 2008
54. Increase in average prices of residential units on the primary and secondary markets in selected Russian regions (%, end-quarter to end-2007), Q2 2008
55. Largest construction companies in Russia by revenue, 2008
56. Largest construction companies in Russia by revenue, 2008
57. Largest construction companies in Russia by revenue, 2008

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Russian construction industry afflicted by the global economy crisis - October 2008 In the second half of 2007 and the emergence of the global credit crisis, property developers began to encounter problems in finding financing for their projects. Banks became more stringent and selective in lending to both corporations and individuals. In Russia, the impact has been less significant than in other CIS countries and this is reflected by the healthy growth figures in the value of construction works completed in 2007 and the first half of 2008. To receive a full version of this FREE article, please fill in the form below. The article (in a PDF file ) will be sent to your e-mail address. None of this information will be disclosed to third parties. To be assured that we take your privacy seriously, please read our privacy policy. Please fill out all the fields correctly. Information will only be provided if forms are adequately completed.

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