MIL-OSI Russia: Marat Khusnullin: Almost 7 million sq. m of non-residential real estate commissioned in Q1

Translation. Region: Russian Federal

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

The construction of non-residential real estate, along with housing construction, is an important area of integrated development of populated areas. Modern business centers, industrial enterprises, trade facilities, social infrastructure and logistics complexes form a full-fledged urban environment, provide citizens with services, create jobs and contribute to the growth of the local economy, said Deputy Prime Minister Marat Khusnullin.

“At the meeting of the State Council Presidium, chaired by the President last week, issues of creating and updating infrastructure for comfortable living were discussed. An important factor in the balanced development of territories is the construction of non-residential real estate. A modern residential area must necessarily include the necessary infrastructure for life: schools and kindergartens, hospitals, shops, and so on. Every year, about 35 million square meters of non-residential buildings are commissioned in Russia. Last year, we saw an absolute record over the past 25 years – 38.4 million square meters of non-residential real estate were commissioned. In the first three months of 2025, we have also seen positive dynamics. The commissioning of non-residential real estate compared to the same period last year increased by 2.5% – to 6.93 million square meters,” said Marat Khusnullin.

There is also growth in certain types of real estate. Almost 36% more administrative buildings – offices, enterprises, agencies – were put into operation. 23% more commercial properties, such as shopping centers, hotels, trade and consumer services enterprises, were commissioned. 15% more other buildings were put into operation at the beginning of the year: religious, transport, communication facilities.

“The absolute leader in the commissioning of non-residential real estate today is commercial. In the first three months of 2025, 2.37 million square meters were commissioned – this is 34% of all non-residential. This trend confirms the dynamics of the previous year, when the commercial sector also occupied leading positions. Therefore, commercial properties are the most attractive for investors today,” emphasized First Deputy Minister of Construction and Housing and Public Utilities Alexander Lomakin.

At the same time, if you pay attention to the number of permits issued for future construction, you can see what prospects await the non-residential real estate sector.

In the first three months of 2025, the largest number of permits were issued for the construction of industrial buildings – factories, plants, etc. – 1,036 permits for a total area of 4.5 million square meters, which is more than 34% of the area of buildings for all new permits.

“Today, construction is still focused on commercial buildings. But new industrial facilities are on the way. Judging by the dynamics of project launches, more factories, plants, and defense industry enterprises will be commissioned. This is primarily due to the growth of industry focused on the domestic market,” said Dina Safiullina, head of the Project Directorate of the Ministry of Construction.

As of 1 April 2025, the area of non-residential buildings with valid building permits was 171.5 million square meters, which is almost 12% more than the data as of 1 April 2024. The largest share – over 51 million square meters, or 33% – is accounted for by industrial buildings.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

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