Page 100 - RUSRptApr17

Russia construction sector remains in a protracted recession with no end in sight , according to a report from the Russian Construction Rating Agency (RASK). In 2016 total construction works were worth RUB6.18 trillion, a fall of 4.3% from 2015 in comparable prices, according to Rosstat. Overall the construction spend has been falling for the last three years.
Russia’s real estate investments fell by a fifth (18%) in the first quarter of this year vs the same period a year earlier to reach $830m, according to a report by Jones Lang LaSalle (JJL).
The decline in government contracts has been especially painful for the industry, which accounts for more than 60% of all investment. The total amount of public procurement for last year was RUB5.8 trillion, which was down 11% in ruble terms and down by 29% in terms of the number of contracts.
Last year’s fall would have been much greater if not for the construction of the Kerch bridge between Russia and Crimea as well as on going construction of football stadiums for the World Cup.
More generally Russia saw its first reduction of housing construction in six
100 RUSSIA Country Report April 2017 www.intellinews.com