In May 2026, Russia and China signed a memorandum of cooperation in urban development, marking a significant step toward creating a unified digital standard for the real estate sector. The agreement focuses on implementing Smart City technologies, developing green and energy-efficient construction, reducing the investment-construction cycle, digitalizing the industry, and utilizing artificial intelligence in building processes. The two sides also agreed to collaborate on construction projects in permafrost and cold climate conditions.
Russia brings unique expertise in construction under extreme climatic conditions and a high level of digitalization in public services. China, in turn, is the world leader in urbanization speed and the scale of technology implementation in infrastructure. Combined, these competencies form the foundation for a new model of urban environment management.
The construction industry is on the verge of its largest transformation in decades. Real estate is becoming part of the digital economy, climate policy, and a new data infrastructure. Russian Minister of Construction Irek Faizullin noted that artificial intelligence technologies must become an integral part of all core processes in the construction industry. Starting in 2026, a phased transition to AI use is planned, and by 2030, digital tools should cover the entire lifecycle of capital construction projects — from design to operation.
The May 2026 joint statement between China and Russia also confirmed both sides’ willingness to deepen cooperation in housing and urban-rural development, conduct joint research on “quality housing” in cold regions, and strengthen mutual learning in areas such as urban infrastructure safety, urban renewal, and the application of digital and artificial intelligence technologies in the construction industry.
