Construction output in Latvia down 5.5% in Q1

Output in the construction of buildings fell by 22 % whereas in civil engineering as well as specialised construction grew by 19 % and 3.1 %, respectively (installation of solar panels and equipment thereof had the largest contribution to the increased output).

Higher construction output in civil engineering was facilitated by an upturn in the construction of utility projects (35.2 %) and construction of roads and railways (2.5 %). Output in the construction of other civil engineering projects not elsewhere classified (water projects and other civil engineering not elsewhere classified) dropped by 4 %.

Among specialized construction activities, increased output was registered in demolition and site preparation (7.6 %), electrical, plumbing and other construction installation activities (6.3 %), and other specialized construction activities (14.8 %). However, output in building completion and finishing (plastering, floor and wall covering, painting and glazing, etc.) fell by 12.5 %.

In Q1 2024, compared to Q4 2023, construction output reduced by 2.9 % (seasonally adjusted data at constant prices). Construction of buildings went down by 16 %, civil engineering by 15.7 %, while specialized construction activities up by 3.1 %.

In Q1 2024, 659 building permits were granted for the construction, capital repairs, reconstruction and restoration of residential buildings with the intended area of 152 thousand m² (520 permits for the construction of new buildings with the intended area of 116 thousand m²). Out of the number, 416 permits were granted for the construction of one-dwelling buildings with the intended area of 87 thousand m².

During the period, 251 building permits were granted for the construction, capital repairs, reconstruction and restoration of non-residential buildings with the intended area of 198 thousand m² (182 permits were issued for the construction of new non-residential buildings with the intended area of 120 thousand m²). Out of the number, 52 permits were granted for the construction of industrial buildings and warehouses with the intended area of 43 thousand m² (38 permits for the construction of new buildings with the intended area of 35 thousand m²).