For the third consecutive quarter, construction activity in Latvia has increased. This year, growth has been driven by more active construction of infrastructure projects.
In the first three quarters of this year, construction output was 8.9% higher than in the same period of 2024 (according to unadjusted data at comparable prices). In the third quarter, output increased by 9.6% year-on-year. As in previous quarters, the strongest impact came from increased construction of infrastructure facilities.
Across the main construction segments, differences in growth momentum are evident. In 2025, the main driver of sectoral development has been civil engineering. It continued to grow rapidly, while activity in building construction and specialized construction works increased at a much slower pace. In the third quarter of 2025, building construction output rose by 5.0% compared to the third quarter of 2024. During this period, the residential segment of two- and multi-apartment buildings was the key contributor to positive results in this group.
Civil engineering maintained its position as the fastest-growing construction segment, with an increase of 22.4% during this period. Overall, strong growth was observed across all civil engineering segments, with the road and railway construction segment making the largest contribution.
The volume of specialized construction works in this period was 3.4% higher than in the third quarter of 2024. Growth was driven by segments such as electrical installation, pipeline installation, and similar activities.
In the third quarter of 2025, 1,262 building permits were issued, which is 10.3% more than in the same period last year. A similar trend is observed in floor area dynamics, which increased by 31.4%, largely driven by two- or multi-apartment residential buildings, as well as buildings intended for large-scale entertainment events, education, or healthcare.
The positive trend in the business confidence indicator continued in the third quarter of 2025. It is expected that continued investment inflows will further support positive developments in the construction sector.