Russia registers a growth of residential and non-residential buildings

Going against the optimistic forecasts made at the beginning of the year, construction output in Russia decreased in 2013 by 1.5% year on year in real terms, according to data of the State Statistics Service (Rosstat). The market was dragged down mainly by the downturn in the civil engineering and infrastructure sector.

Going against the overall trend in the construction industry, the positive trend in the non-residential segment continued in 2013, with a total of 10,071 non-residential buildings commissioned in Russia during the first three quarters of the year, exceeding the number recorded during the same period a year ago by 6.5%, while the total floor space of new buildings surged by 24.7% year on year. The most impressive growth rates were registered in the educational building sector, with 317 new projects initiated in 2013 (+21.5% compared to 2012), the administrative buildings sector, with a total of 669 (+19% year on year), and in the construction of commercial buildings (+18%).

The residential sector also witnessed positive results at the end of 2013, (5.5% up year on year), confirming the positive performances of the previous year. Overall, 69.4 million sq.m of new housing was launched in Russia in 2013 (+5.6% compared to 2012), for a total of 912,100 new flats built (+10.3% year on year).

The ceramic tile industry and market

The positive trend registered in the residential and non-residential construction sectors has allowed the ceramic tile industry and market in Russia to continue maintaining positive in 2013, even if the increases registered are no longer double-digit figures. 

The national consumption of ceramic tiles has reached the all-time record of 231 million sq.m, an increase of 5.7% on the 218.8 million figure of 2012 (the increase in 2012 had been 15.7%).  

The main beneficiaries of this increase in demand were local producers, whose sales on the national market rose by 7.8%, to 158.1 million sq.m. Imports were considerably less dynamic, with estimated volumes of around 73 million sq.m (+1.5% compared with 2012).

Russian ceramic tile production continued to increase in 2013, going from 156 to 166.6 million sq.m (+6.8%, as opposed to the 15% increase in 2012).

Regarding the largest exporters to Russia, initial estimates indicate a new fall in imports from Belarus (-8.3%) and the first drop in imports from the Ukraine (-7.9%), which remains the top foreign supplier of ceramic tiles in the national market. Imports from China and Spain rose, both registering approximate exports to Russia of around 14 million sq.m. 

At the end of 2013, imports accounted for 31.6% of the national consumption of ceramic tiles, a drop compared with the 33% registered in 2012.

Download or read online the full article published on Ceramic World Review 106/2014