Dublin, April 30, 2024 (GLOBE NEWSWIRE) -- The "Latvia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028" report has been added to ResearchAndMarkets.com's offering.
The analyst expects the construction industry in Latvia to shrink by 6% in real terms in 2024, following an annual growth of 17.9% in 2023, owing to a high base effect, coupled with headwinds such as elevated inflation, high interest rates and construction material prices, as well as supply chain disruptions caused by the Red Sea conflict.
According to the Central Statistical Bureau (CSB), the average Construction Cost Index (CCI) grew by 1.7% year-on-year (YoY) in the first two months of 2024, following an overall annual increase of 7.4% in 2023; by segments, the average CCI grew by 2.8% YoY for residential buildings, 2% YoY for non-residential buildings, and 1.3% YoY for civil engineering structures during the first two months of 2024.
Residential construction, which was the fourth-largest sector in the Latvian construction industry in 2023, is expected to be one of the hardest-hit sectors this year, registering an annual fall of 11.9% in 2024; this weakness is attributed to a sharp fall in residential building permits and high construction costs. According to the CSB, the total number of permits issued for residential buildings declined by 6.5% in 2023, preceded by an annual decline of 1% in 2022. Furthermore, a fall in export activity and a global economic slowdown amid the ongoing geopolitical tension are likely to deteriorate the performance of the construction industry in the short term.
The industry is however expected to rebound at an average annual rate of 3.4% from 2025 to 2028, supported by investments in transport and renewable energy infrastructure projects. The government aims to reduce greenhouse gas emissions by 6%, compared to 2005 levels, by 2030 and achieve climate neutrality by 2050. To support this target, Latvia is focusing on increasing the capacity of renewable energy across the country.
In September 2023, Lithuania-based energy holding company Ignitis Group announced its plan to invest EUR270 million ($286.2 million) in acquiring the Latvian renewables company to construct a 200MW hybrid wind-solar project in Latvia. Moreover, in October 2023, Saeima, which is the parliament of the Republic of Latvia, approved the 2024 Budget, with an expenditure of EUR16.2 billion ($17.2 billion). The budget includes an allocation of EUR334.5 million ($354.6 million) for developing road infrastructure.
Scope
- Historical (2019-2023) and forecast (2024-2028) 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 the analyst'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 the analyst's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Latest news and developments
4 Project analytics
5 Construction Market Data
6 Risk Profile
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/otrjus
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