Residential Construction Volumes Have Fallen in the rf

The official statistics from the rf’s construction industry shows growth, but the reality tells a different story. In the first half of 2026, the volume of completed multi-unit housing increased by approximately 8%. However, most of this growth was driven by projects that simply could not be completed in 2025 and were carried over to this year.

Actual construction volumes, on the other hand, are falling. From January through June 2026, 42.76 million square meters of housing were completed in russia, by 18% less than last year. In some months, the decline reached 21.7–25%, while the pace of completions fell to its lowest level in the past five years. The reasons are directly linked to the state of the Russian economy: construction materials are becoming more expensive, regions lack the funds for engineering and transportation infrastructure, and the cost of loans makes construction economically unfeasible without government support.

Demand is falling most sharply in moscow and  moscow region: sales and construction volumes of business-class and premium-class housing are declining.

The situation will continue to deteriorate. Investment in the construction sector will decline, the financial condition of regional developers will weaken, and companies with high debt burdens will increasingly go bankrupt. The model that kept the industry afloat in 2020–2024 through large-scale subsidized mortgages has run its course. With current interest rates and no possibility of further expanding subsidy programs, construction in the rf  is being sustained primarily by direct and indirect budget injections.

The downturn will also affect related industries: the production of building materials, the steel industry, the woodworking industry, transportation, and the furniture and home appliance retail sectors.