Russia’s construction sector is facing a deepening crisis. The number of companies ceasing operations or at risk of bankruptcy is rising, while the financial performance of the largest developers is deteriorating.
This was reported by the Foreign Intelligence Service of Ukraine.
In January–September 2026, 31.1 thousand construction companies were liquidated in Russia, around 10% of their total number.
Another 30.4 thousand businesses are in bankruptcy or liquidation proceedings, 41.7 thousand companies have had account operations suspended, and 47.1 thousand face a high risk of bankruptcy.
The debts of the 12 largest Russian developers rose by 19% to $42.5bn. Debt-servicing costs increased by 30% to $3.1bn. At the same time, the combined net profit of these companies fell from $1.18bn to $120.5m.
Profitability in residential construction in Russia has dropped from 20–25% to 8–12%.
In Moscow, the number of new-build transactions fell by 32%, and developers’ revenues declined by 14%. The volume of unsold housing reached 34.7 million square metres.
Housing completions are also declining in Russia. According to the figures cited, the indicator fell by 13.4% to 66.3 million square metres. Individual housing construction volumes dropped by 20.8% to 41.4 million square metres.
Intelligence officials note that these indicators point to deepening problems in Russia’s construction sector.