Exploring Opportunities, Challenges, and Competition Across the Regions

In 2025, construction companies are increasingly shifting their attention toward regional markets. Many territories still require large-scale development — and in some cases, projects must begin entirely from the ground up. This expansion covers not only residential and commercial construction but also critical infrastructure such as roads, bridges, airports, seaports, hospitals, and hospitality facilities.

A Strategic Shift in 2025

Regional development has become a key growth driver for the construction industry. As metropolitan areas approach saturation, investors and developers are turning their focus to smaller cities and fast-developing territories.

Among the most promising destinations are regions with active tourism sectors and access to the sea — including the Krasnodar Territory, Dagestan, Crimea, and the Russian Far East. Areas such as Altai and Lake Baikal are also gaining traction, with continued expansion of tourism clusters anticipated in the coming years.

From a regulatory standpoint, administrative and procedural differences across regions remain minimal. The majority of construction norms and standards — including building codes and safety requirements — were originally established during the Soviet period and continue to serve as the basis for current practice. However, regional policies can vary, particularly in terms of taxation. Major cities, in turn, often introduce additional requirements tied to modern urban development — for example, new rules governing the construction of high-rise buildings and complex architectural structures.

Challenges to anticipate

A robust network of trusted suppliers and subcontractors is one of the most valuable resources for any construction company. Launching a project in a new region often means building this network from scratch, a process that can take months or even years.

Material supply and logistics can also be more complicated in the regions. While Moscow and its surrounding areas provide easy access to virtually everything, remote locations often only offer basic supplies. Careful planning is therefore essential: knowing what materials will be required, when, from where they will be transported, and where they will be stored.

For DEKRA CONSTRUCTION, material supply is rarely an issue. The company has extensive experience with remote and challenging locations, such as island construction in the Indian Ocean — where nearly everything had to be imported except from fish and coconuts.

Is regional competition lower, or is it just an illusion?

It depends on the project. Large-scale developments can attract international players, particularly from Turkey and Serbia. For them, the choice of location — whether Moscow or a regional city — is secondary to the opportunity itself. Take Salekhard, for example. Even capital-based general contractors are paying attention to such projects — though with far less interest than they show in Moscow-based developments.

Large-scale projects can sometimes exclude local companies, as they may not meet prequalification requirements such as annual turnover, number of staff and equipment, or the ability to provide bank guarantees.

Companies that operate in major cities typically look for opportunities there first, and only then consider projects outside the city. Higher property prices in Moscow, St. Petersburg, and other metropolises encourage investors to invest more readily, whereas regional markets are more sensitive to changes in the economic climate.

Smaller projects follow a different logic. Due to higher overhead costs — including salaries, relocation of staff, travel expenses, and housing rentals — foreign and capital-based companies often cannot compete with local firms. Consequently, the smaller the project, the lower the competition for local companies.

Demand remains strong across all sectors: housing is needed everywhere, business centers in larger and mid-sized cities, and hotels in tourist regions. Today, we are seeing the regional construction market grow. At the same time, Moscow continues to offer opportunities for new developments. With planned expansions of highways and railways, the metropolis will keep growing, gradually absorbing nearby towns and settlements.