Latvia Construction Market Size, Trends, and Forecasts Analysis 2023-2027: Annual Average Growth Rate of 3.6% from 2025-27, Supported by Investments in Electricity, Transport and Real Estate Projects

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Mar 04, 2024, 10:45 ET

DUBLIN, March 4, 2024 /PRNewswire/ -- The "Latvia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027" report has been added to ResearchAndMarkets.com's offering.

The Latvian construction industry was forecast to grow by 11.5% in real terms in 2023, supported by the stronger investments and developments in the energy infrastructure projects. According to the Central Statistical Bureau (CSB), the volume of construction output rose by 23.1% Year on Year (YoY) in first nine months of 2023, rising from EUR1.8billion ($1.8 billion) in January-September 2022 to EUR2.2 billion ($2.2 billion) January-September 2023, this was preceded by annual growth of 6.4% in 2022.

In addition, the construction value add increased by 16.1% YoY in Q3 2023 preceded by Y-o-Y growth of 14.9% in Q2 and 16.2% in Q1 2023. However, the sector's output is expected to decline by 4.1% in 2024, owing to the economic headwinds including geopolitical uncertainties, inflationary pressures and increasing construction costs disturbing the industry's development and newer investments. The 2024's decline is also attributed to a fall in the building permits. According to the CSB, the total number of permits issued for residential buildings fell by 7.5% in the first nine months of 2023, while that for hotels, wholesale and retail buildings fell by 8.1% YoY and for office buildings, it fell by 25% YoY in of the same period of 2023.

The industry's output is expected to register an annual average growth rate of 3.6% from 2025-27, supported by investments in electricity, transport, and real estate projects. Latvia's executive body, the council of ministers, approved a proposed budget for FY2024-25, in October 2023. Of the total budget, EUR334.5 million ($341.6 million) is allocated for developing the road infrastructure, EUR275 million ($280.8 million) for the healthcare sector and EUR120 million ($122.5 million) for the education sector.

Among the recent developments, in September 2023, Polish infrastructure and service providing company Budimex along with France based civil engineering construction company, Eiffage and Italian construction company Rizzani de Eccher, announced that they had won a contract for the construction of high-speed railway line in Latvia. The project with an estimated investment of EUR3.7 billion ($3.8 billion), with the first phase of the project costing EUR 230 million ($234.9 million). The entire project is expected to be completed by 2032. Furthermore, in the energy sector, in September 2023, Lithuania based energy holding company Ignitis Group announced its plan to invest EUR270 million ($275.7 million) for acquiring the Latvian renewables company for construction of 200MW hybrid wind-solar project in Latvia.

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.

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

Key Report Benefits

Identify and evaluate market opportunities using the 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 the critical and actionable insight.
Assess business risks, including cost, regulatory and competitive pressures.
Evaluate competitive risk and success factors.

For more information about this report visit https://www.researchandmarkets.com/r/qij3ew

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