Latvia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Latvia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

The Latvian construction industry remained weak in 2022, posting a contraction of 13.1% during the year, owing to a decline in building construction (-10.7%) and civil engineering construction (-14.3%). GlobalData expects the industry to decline by 1.3% in real terms in 2023 as the industry will continue to feel the pressure from geopolitical uncertainty, high construction costs and slowing economic growth. Declining building permits in 2022 also suggests weaker levels of activity this year, with office permits down by 31.7% annually, wholesale and retail buildings by 8.3%, and residential permits by 0.3%, according to the Central Statistical Bureau (CSB). The latest data issued by the CSB also shows a decline in the value add of the construction industry by 8.3% YoY in Q4 2022, preceded by Y-o-Y declines of 13.6% in Q3 and 13.8% in Q2 2022.

The industry is expected to recover and register an annual average growth rate of 4.1% from 2024 to 2027, supported by investments in transport, electricity, and housing projects. In March 2023, Latvia’s Parliament (Saeima) passed the 2023 State Budget, which includes an expenditure of EUR14.7 billion ($15 billion) and a revenue of EUR12.7 billion ($13 billion) in 2023. The budget includes an allocation of EUR740.3 million ($756 million) for improving the quality and safety of state roads and developing infrastructure for pedestrians and cyclists. The budget also allocates EUR45.1 million ($46.1 million) for the education sector and EUR161.5 million ($164.9 million) for the healthcare sector.

The 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 (2018-2022) and forecast (2023-2027) 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.