Analytics, Construction, Covid-19, Latvia, Real Estate

In the 2nd quarter of this year construction output was negatively affected both by COVID-19 pandemic (drop in demand), and by lack of voluminous construction objects. COVID-19 was mentioned as a reason for drop in construction output by 47 or 5.9 % of construction enterprises surveyed.

The most significant output decline, as compared to the corresponding quarter of the previous year, was in civil engineering, which was affected by reduction (of 15.6 %) in construction of roads and railway as well as construction of water projects and other civil engineering n.e.c. (of 46.6 %). Construction output increase, in turn, was registered in construction of utility projects (of 27 %).

Construction output rise was observed in such specialized construction activities as electrical, plumbing and other construction installation activities – by 16.5 %, as well as in other specialized construction activities and demolition and site preparation – by 27.7 % and 26.4 %, respectively.

Compared to the previous quarter, in the 2nd quarter of 2020, construction output fell by 12.9 % (according to seasonally adjusted data at constant prices), of which construction of buildings reduced by 12.2 %, civil engineering – by 10.3 % and specialised construction activities – by 13.8 %.

Construction output changes (as per cent, at constant prices)

Building permits granted (2)

In the 2nd quarter of 2020, 698 building permits were granted for the construction, capital repairs, reconstruction and restoration of residential buildings with the total floor space of 194 thousand m2 or 297 building permits less and 28 thousand m2 smaller space than in the 2nd quarter of 2019, of which 503 permits with the intended floor space of 144 thousand m2 were issued for construction of new buildings (240 building permits less and 21 thousand m2 smaller intended floor space than a year ago). Out of the total number, 402 permits were granted for construction of one-dwelling buildings (with intended floor space of 77 thousand m2).

During the period, 371 building permit was granted for the construction, capital repairs, reconstruction and restoration of non-residential buildings with the total floor space of 303 thousand m2 (95 building permits less and 104 thousand m2 smaller intended floor space than in the 2nd quarter of 2019), of which 236 permits with the intended floor space of 160 thousand m2 were issued for construction of new non-residential buildings. In its turn, 55 building permits were granted for construction of industrial buildings and warehouses with the total floor space of 82 thousand m2, of which 34 permits were issued for construction of new buildings with the total floor space of 60 thousand m2.

The data published might be updated in the following quarters if there will be any additional or updated information from enterprises and administrative data sources. More information on index of 

production in construction and building permits granted is available in the CSB database section „Construction”.

Methodological explanations
1 Own account construction works, including those performed abroad.
2 Since the 4th quarter of 2014, the term granted permits in construction statistics characterises construction permit records confirming that conditions for commencement of construction work have been met.