Sustainable Construction – A Top Priority for the Baltic Real Estate Market in 2025

Sustainable construction is no longer just a trend—it has become the industry standard shaping the future of the real estate market in Latvia and the Baltic region. According to the CBRE Baltic Real Estate Market Outlook 2025, more than 60% of new office buildings are being developed in line with sustainable construction standards, ensuring lower energy consumption and reduced environmental impact

“Sustainable construction is no longer just a trend—it has become the defining standard for the development of the real estate sector in Latvia and across the Baltics. Our construction companies are ready to deliver energy-efficient, sustainable buildings that meet the highest environmental and quality benchmarks. In 2025, construction will be one of the key drivers of Latvia’s economic growth, and we forecast a 4–5% increase in sector performance,” said Edijs Kupčs, Chairman of the Latvian Construction Contractors Association.

Sustainable development is becoming the leading direction for the Baltic real estate market, with growing investor and developer focus on energy efficiency, green certifications, and sustainable materials.

Armands Gūtmanis, Head of the Latvian Sustainability Cluster, added:

“As highlighted in the market outlook, energy efficiency is becoming a key criterion in investor decision-making. In the office and industrial sectors, demand for sustainable buildings has risen by 15%, while outdated buildings that fail to meet modern energy standards have experienced up to a 20% drop in value.

The largest share of investments is now being directed toward Class A office buildings with low energy consumption, which account for over 60% of new transactions in the Baltic region.”

The head of the Construction Contractors Association emphasized that energy efficiency is already one of the main criteria in construction procurement—and its importance will only grow.

“Public procurement, which makes up 40–60% of total construction volume in Latvia, must not be treated as a mere formality. It must become a driving force for sustainable development.

A clear and strategic construction procurement policy, closely aligned with EU funding programs, can give a significant boost to the economy. For example, large-scale residential building renovation would not only improve energy efficiency but also stimulate stable demand, encouraging building material manufacturers to invest in Latvia—leading to new factories and job creation,” Kupčs explained.

The implementation of energy efficiency standards and support for sustainable projects will not only reduce emissions but also enhance Latvia’s regional competitiveness, attract international investors, and help build a greener, more resilient economy.

You can view the full market report here:

Market-Outlook-Baltics-2025.pdf

Download PDF • 12.61MB