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Latvia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (H2 2026)

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    Report

  • 36 Pages
  • July 2026
  • Region: Latvia
  • GlobalData
  • ID: 5807341

Latvia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (H2 2026)

Summary

Following growth of 9.4% in real terms in 2025, growth in Latvia’s construction industry is expected to slow down to 3.8% in 2026, with growth being constrained by macroeconomic factors including surging inflation owing to the Middle East conflict, elevated interest rates and higher expenditure into the defense sector which will likely lead to a reduction in infrastructure expenditure. However, growth will continue to be supported by investments and developments in the industrial, transportation and housing sectors. According to the Central Statistical Bureau (CSB), the total volume of construction output grew by 4.6% year on year (YoY) in Q1 2026; preceded by a growth of 13.5% in Q4 2025 and 12.3% in Q3 2025.

Downside risks to the economy and business environment are expected to adversely affect construction output in the short to medium term. In July 2026, the Ministry of Finance (FM) revised its medium-term macroeconomic and fiscal forecasts, lowering Latvia's projected economic growth for 2026 from 2.6% (forecasted in February 2026) to 2%, with inflation forecast increased from 3.3% to 3.6%. These revisions reflect the impact of higher energy prices, ongoing supply chain disruptions, and heightened geopolitical uncertainty resulting from the escalation of the conflict in the Persian Gulf. Over the remainder of the forecast period, the construction industry’s output is expected to register an average annual growth rate of 3.2% between 2027 and 2030, supported by public and private sector investments in transport and renewable energy infrastructure. In 2025, Riga airport authority unveiled its 2025-2050 Master Plan, a 25-year strategy to transform the airport into a leading multimodal hub in Northern Europe.

The analyst’s Construction in Latvia - Country Briefing (H2 2026) report provides detailed market analysis, information, and insights into the Latvian construction industry, including:

  • The Latvian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Latvian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Latvia. It provides:

  • Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in Latvia, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts
  • Understand the latest industry and market trends
  • Formulate and validate business strategies using the analyst's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Table of Contents

1 Executive Summary2 Construction Industry: At-a-Glance3 Latest news and developments4 Project analytics5 Construction Market Data6 Risk Profile
7 Appendix
7.1 Definitions
7.2 CRI Methodology
  • About the Analyst
  • Contact Us
List of Tables
Table 1: Construction Industry Key Data
Table 2: Latvia, Top Commercial Construction Projects by Value
Table 3: Latvia Construction Output Value (Real, $ Million)
Table 4: Latvia Construction Output Value (Nominal, EUR Million)
Table 5: GlobalData Construction Market Definitions
Table 6: GlobalData Construction Market Definitions
Table 7: Ratings, Scores and Definitions
List of Figures
Figure 1: Latvia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021-30
Figure 2: Latvia, Construction Output Value, by Sector (Real, $ Million), 2021-30
Figure 3: Eastern Europe and Central Asia, Construction Output (Real % Change), 2024-30
Figure 4: Latvia, Construction Output by Sector (Real % Change), 2024-26 and 2027-30
Figure 5: Latvia, Construction Value-add (Constant 2020 Prices, EUR Million)
Figure 6: Latvia, Volume of Construction Output, in current prices, % Change YoY
Figure 7: Latvia, Average Monthly Wages and Salaries of Employees in the Construction Industry (In EUR)
Figure 8: Latvia, Hourly Labor Costs in Construction, Seasonally Unadjusted Data, % Change YoY
Figure 9: Latvia, Number of Permits Approved for Residential Buildings
Figure 10: Latvia, Total floor area construction started for Residential Buildings, in thousand m2
Figure 11: Latvia, New Business Loans to Households for House Purchase, In EUR Million
Figure 12: Latvia, House Price Index (HPI), 2025=100
Figure 13: Latvia, Construction Cost Index for New Residential Buildings, 2021=100
Figure 14: Latvia, Value-add of Real Estate Activities (Constant 2020 Prices, EUR Million)
Figure 15: Latvia, Number of Permits Issued for Office Buildings (Based on 3-Quarter Moving Average), % Change, YoY
Figure 16: Latvia, Total floor area construction started for the office building, in thousand m2, (measured in average of three quarters)
Figure 17: Latvia, Number of Permits Issued for Hotels, Wholesale, and Retail Buildings, (Based on 3-quarter moving Average)
Figure 18: Latvia, Total floor area construction started Hotels, Wholesale, and Retail Buildings, in thousand m2, (Measured in 3-Quartert Moving Average basis)
Figure 19: Latvia, Volume of output for construction of roads and railways, in EUR Million, in current prices
Figure 20: Latvia, Construction cost index for the capital reconstruction and new building of the road (2021=100)
Figure 21: Latvia, Volume of Construction of Utility Projects for Electricity and Telecommunications, in EUR Million, in Current Prices
Figure 22: Latvia, Non-Resident Visitor Arrivals, In Thousands
Figure 23: Latvia, Total Exports, In EUR Million
Figure 24: Latvia, Industrial and Manufacturing Production Volume Indices, 2021=100, Seasonally Adjusted Data, % Change YoY
Figure 25: Latvia, Total Gross Electricity Production and Electricity Consumption, in Million Kwh
Figure 26: Latvia, Value-add of Education, Health, and Social Care Services, In Constant 2020 Prices, % Change YoY
Figure 27: Latvia, Construction Projects Pipeline, Value by Stage ($ Million)
Figure 28: Latvia, Risk Summary
Figure 29: Latvia, Risk Regional Comparison