Dublin, May 29, 2024 (GLOBE NEWSWIRE) -- The "Lithuania 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.
Following an annual growth of 9.8% in real terms in 2023, the construction industry in Lithuania is expected to contract by 3.5% in 2024, owing to a high base effect, coupled with a rise in overall inflation and construction costs, high interest rates and decline in exports. According to Oficialiosios Statistikos Portalas (OSP), the average construction inputs price index grew by 5% year on year (YoY) in 2023.
Furthermore, a decline in investor and consumer confidence is expected to affect new building investments and housing demands, which lead to decline in construction activities. According to OSP, the total number of dwellings for which permits were granted declined by 30.5% YoY in 2023, preceded by an annual decline of 13.6% in 2022.
Moreover, the total floor area of the building started fell by 22.7% YoY in 2023. By sectors, it fell by 30.9% YoY for residential buildings, and 14% for non-residential buildings during the same period. Furthermore, the total value of construction work done within the country for both residential building and non-residential building declined by 11.3% YoY and 10.2% YoY respectively in 2023.
Over the remainder of the forecast period, the Lithuanian construction industry is expected to register an average growth of 3.5% from 2025 to 2028, supported by investments in energy, transport, housing and the industrial construction projects. The country aims to develop 1GW of onshore wind power capacity and 1GW of solar power capacity by 2025 and install wind turbines with a total capacity of 4.5GW in Lithuanian waters by 2028.
In January 2024, Lithuania's National Energy Regulatory Council (NERC) launched a tender for the second offshore wind project in the Baltic Sea near Palanga. With an installed capacity of 700MW, the project is expected to be completed by 2028. Previously, in November 2023, Ignitis Renewables a local energy company reported that it is conducting a geophysical survey to find the location for the development of an offshore wind farm project in the Baltic Sea. The project includes the construction of a 700MW offshore wind farm by 2030, which will be equipped to generate 3TWh of electricity annually.
Moreover, in March 2024, the Nordic Investment Bank (NIB) and LT Energija a local energy company signed a loan agreement worth EUR100 million ($108.2 million) to construct a wind farm project in Pagegiai. The project includes the construction of a 264MW wind farm with a total cost of EUR460 million ($487.6 million) by 2026.
Scope
- Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Lithuania, 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 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.
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/m0554p
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