Construction industry in Russia

Construction in Russia in 2022

The record for Russian construction in 2022 is 102.6 million square meters of residential real estate

which is the best pace of residential real estate construction in the history of modern Russia.

The largest Russian development and construction companies in 2022 were “PIK” with 2.3 million square meters, “Aircraft” with 1.4 million square meters and “Dogma” with 1.4 million square meters. Regional developers operating outside the Moscow region, the Leningrad region and St. Petersburg launched the construction of 29.6 million square meters of housing.

The launch of new projects is an important leading indicator that determines the volume of housing construction and commissioning over a 2-year period. According to current figures, there will be no decrease in the launch and construction of housing projects until 2025.

The group of machine-building companies (Kranex, PTZ, Chetra) together account for about 80% of the Russian market for road and construction equipment (DST), and special equipment in Russia and special equipment.

Due to the special military operations of the Russian Federation in Ukraine, the supply of a wide range of special equipment was subject to sanctions by the European Union and Japan. As a result, in 2022, in addition to the supply of domestic Russian players, the market was replenished only due to Chinese imports.

Modular and prefabricated technology is used to speed up the development of construction projects in Russia and can improve quality with qualified standardization and has higher accuracy compared to conventional projects.

In the six-year modernization program until 2024, the country invests $ 96 billion in the modernization of highways, transport facilities, airways and the country’s infrastructure.

Top 10 companies producing building materials in Russia – February 2023

Building materials retail chains

Among the building materials stores in Russia, there are developed retail chains operating in most regions of the Russian Federation.

Leroy Merlin

One of the largest retail chains. It offers affordable prices due to direct delivery of goods from manufacturers.

This international company has 108 stores in 55 cities of the Russian Federation, as well as a developed resource for online sales.

Petrovich

In second place is the trading network “Petrovich”. The company is one of the leaders in the DIY (Do-It-Yourself) category.

OBI

The trading network occupies a leading position among companies selling goods for repair, summer cottages, home and gardening both in physical stores and via the Internet.

SATURN

There are 44 stores under the SATURN brand in 34 cities of Russia.

Castorama

Since 2020, Castorama hypermarkets have become the property of Maksidom. The first Castorama building materials store in Russia was opened in Samara in 2006. To date, Maksidom has 13 hypermarkets in the Russian Federation and sells goods on the Internet.

Baucenter

Baucenter has been operating in the Russian market for over 25 years. It is an extensive network of physical DIY stores and a resource for online sales. It has 9 stores in different cities of Russia.

Megastroy

12 stores of the distribution network are located in 7 cities of Russia.

AXON

One of the largest domestic retail chains.

This trading network has 16 hypermarkets in 14 cities of the country.

ECONOMSTROY

This trading network has 12 hypermarkets located in Moscow and the Moscow region, as well as an online store.

TOP HOUSE

This trading network has 12 building materials stores in St. Petersburg and 2 stores in Moscow, as well as an online store. The company not only sells goods, but also provides home construction services.

Trading networks are constantly developing and opening new building materials stores in different cities of the country.

Conclusion

Studies on the market share of the building materials industry in the Russian Federation show that more than 70% of this market is in the hands of large construction and building contracting companies, and between 10 and 15% of it is in the hands of chain stores (network retail), and the rest is the share of the free wholesale market.

Iranian building materials

The export capacity of building materials such as tiles, ceramics, cement and plaster from Iran to Russia has increased from $ 3 billion to $ 5 billion.

Iran ranks seventh in cement production in the world

With about 76 cement producing companies, Iran ranks seventh in cement production in the world. Currently, 60 million tons of cement are produced in Iran annually, and this figure is expected to reach 90 million tons by the end of 1401. Russia is one of the countries requesting to buy cement from Iran.

Sanitary valves

Sanitary valves are among the goods exported by Iran to many countries. The world of this product is very wide. Currently, there are nearly 30 different brands in Iran that produce and export these valves.

Ceramic tile and ceramic export
Currently, there are 135 active ceramic tile and ceramic factories in Iran.

Ceramic tiles and ceramic tiles constitute 28% of the Russian flooring market. In terms of imports, 31% of all ceramics used in Russia are imported.

Russia has allocated about 600 million euros in budget for importing various building materials such as stone, ceramic tiles, etc.

Based on factors such as proposed housing renovation programs in major regions of Russia, similar to the renovation program in Moscow, reduction in mortgage rates, and implementation of large infrastructure projects, it is expected that the construction materials export market to Russia will be further strengthened.

Advantages of exports for Iranian manufacturers over Turkish and Chinese manufacturers in the Russian market

All raw materials for the construction industry are supplied from within Iran.

The cost of energy resources in Iran is much lower.

The cost of human resources in Iran is much lower.

The equipment and industries in this field are ready to produce these products with very high capacity.

Exports of Iranian products to Russia are carried out at much lower costs than Chinese goods.

The variety of Iranian products in color, model, quality, and packaging is very high.

Considering the above, in recent years Iran has strengthened its trade relations with Russia, and an important point in exports to Russia is the issue of quality control of products. Due to the strictness in this regard, low-quality Chinese products do not have many fans in Russian markets, and Turkish products are offered at a higher cost than Iranian products due to expensive raw materials and high fuel costs.

Iran, due to its numerous mines, convenient location, access to open waters, and low cost of construction materials, can capture the booming Russian export markets.

Key and important factors for the presence of Iranian manufacturers in the Russian market

Preferential tariffs on import duties for Iranian goods to Russia

Low export costs of Iranian products to Russia compared to Western and Chinese goods

The proximity and proximity of Iran and Russia as a logistical advantage and the possibility of exporting Iranian goods to Russia by various methods such as land, rail and sea transportation in the shortest time and at low shipping prices

The fact that the majority of the market is empty of famous Western brands

The possibility of rapidly expanding market share and accessing the competitive and trade space in Russia

It can be said that there is a high economic justification for entering the large Russian-Eurasian market, and the Fardad Group of Companies is proud to establish effective and successful joint cooperation in this direction.