Despite its significant contribution to the regional economy, Dagestan’s construction industry faces deep-rooted structural challenges, according to Ali Shahbanov, President of the Guild of Builders of the North Caucasian Federal District.
Speaking on current sectoral trends, Shahbanov identified three critical issues:
• Low labor productivity,
• Overreliance on manual labor, and
• Insufficient industrialization, leading to prolonged project timelines.
Shahbanov further noted a broader institutional inertia within the sector—manifested in slow adoption of new regulatory standards and resistance to integrating modern construction technologies and digital solutions.
Compounding these challenges, forecasts indicate that by the end of 2025, housing construction volumes in the Republic are expected to decline noticeably. This downward trend underscores an urgent imperative for Dagestan’s construction enterprises to expand their operations beyond the republic, actively pursuing federal and interregional contracts to ensure financial sustainability and preserve skilled jobs.
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