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

