Analytics, Construction, Good for Business, Latvia, Real Estate

Compared to the 2^nd quarter of this year, construction output in the 3^rd quarter of 2014 decreased by 4.2%, according to seasonally adjusted data at constant prices. Of which construction of buildings dropped by 4.0% and construction of civil engineering structures – by 4.4%.

Construction volume index (2010 = 100)

Data source: Central Statistical Bureau of Latvia

Compared to the corresponding period of 2013, construction output in the 3^rd quarter of 2014 grew by 0.6%, according to calendar adjusted data at constant prices. Construction of buildings rose by 34.7%; of which construction of residential buildings – by 24.4% (13.3% of total construction), and construction and repair of educational buildings grew 2.1 time (9.5% of total construction).

Construction of civil engineering structures, as compared to the 3^rd quarter of the previous year, dropped by 18.6%, which was affected by a significant construction volume drop in construction of streets and roads – of 11.2% (27.1% of total construction), in construction of main pipelines, communication and power lines – of 26.1% (5.6% of total construction), as well as in construction of harbours – of 64.6% (2.3% of total construction). At the same time construction of local pipelines and cables increased by 50.1% (5.7% of total construction).

Compared to the corresponding period of 2013, construction output in the nine months of 2014 grew by 9.7%, according to calendar adjusted data at constant prices. Of which construction of buildings increased by 14.1% and construction of civil engineering – by 5.2%.

Construction volume and changes

During the 3^rd quarter, 725 building permits were granted for construction, capital repairs, reconstruction and restoration of single dwelling buildings with the total floor space of 149.3 thousand m². Compared to the 3^rd quarter of 2013, it is 48 building permits more and the intended total floor space has increased by 6.3%. 478 building permits were issued for the construction of new single dwelling buildings with the total floor space 104.3 thousand m², i.e. for 0.8% larger space without changing the number of permits as compared to the 3rd quarter of the previous year.

133 building permits were granted for construction of industrial buildings and warehouses with the total floor space of 177.5 thousand m². As compared to the 3^rd quarter of 2013, it is 9 building permits less for the total floor space smaller by 14.0%. 78 permits were granted for the construction of new industrial buildings and warehouses with the total floor space 89.9 thousand m² – 1 permit more, but 39.5% of intended floor space less than in the 3^rd quarter of the previous year.

More information on construction volume indices and building permits is available in the CSB database Construction.