Latvia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (H1 2026)
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The construction industry in Latvia is expected to expand in real terms by 3.9% in 2026, supported by investments in transport, housing, and energy projects. According to the Central Statistical Bureau (CSB), the volume of output for the construction of roads and railways grew by 22.9% year-on-year (YoY) in the third quarter of 2025, preceded by growths of 31.5% in Q2 and 90.9% in Q1 2025. Furthermore, in early October 2025, Saeima, parliament of the Republic of Latvia, approved the 2026 Budget, with an expenditure of EUR17.9 billion ($19.5 billion), compared to an expenditure of EUR17.1 billion ($18.7 billion) in 2025. The budget includes an allocation of EUR1.9 billion ($2.1 billion) for the Ministry of Health, EUR796.9 million ($870.2 million) for the Ministry of Transport, EUR606.7 million ($662.5 million) for the Ministry of Education and Science, and EUR85.8 million ($93.7 million) for the Ministry of Climate and Energy.
The industry is expected to register an average annual growth of 3.2% from 2027 to 2030, supported by investments in transport and renewable energy infrastructure projects.
The government aims to reduce greenhouse gas emissions by 65%, compared to 1990 levels, by 2030 and achieve climate neutrality by 2050. To support this target, Latvia plans to increase the capacity of renewable energy infrastructure across the country. Recently, in October 2025, the European Bank for Reconstruction and Development (EBRD), announced its plan to provide a EUR32 million ($34.9 million) loan for the development of 112MW Smiltene wind farm in northern Latvia. The project is part of the larger EUR92 million ($100.5 million) co-financed package with Luminor Bank, which is an Estonia based Bank, and the Nordic Investment Bank, which is a Finland based financial institution. The construction works are expected to be completed by early 2027. The investment strengthens Latvia’s energy security, advances its green transition, and aligns with its goal of 80% renewable electricity by 2030, while contributing to Baltic regional energy integration.
GlobalData’s Construction in Latvia – Country Briefing (H1 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
Key Highlights
Construction,
Latvia’s Construction Industry,
Commercial Construction,
Institutional Construction,
Industrial Construction,
Infrastructure Construction,
Residential Construction,
Energy and Utilities Construction
Reasons to Buy
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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 GlobalData's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors
Table of Contents
Table
Figures
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