Abstract
The construction companies as well as other companies operating in the real estate market are facing a number of challenges - both in internal and external environments. At the same time, the industry presents several options. The objective of the study is to identify the construction sector management problems by exploring the real estate market and construction industry in Latvia, while comparing the situation in the Baltic States. The study approaches also the macroeconomic problems and a number of related issues that may be useful to the management of the companies in the construction industry and the real estate market. The comparative, statistical, data processing and analysis, as well as historical methods have been used in the study. Real estate market is cyclical - the development of real estate market affects the real estate price fluctuations, construction cost price fluctuations and changes in the economic situation in general, thus creating a number of challenges to market development and investment decision-making, so it is necessary to pay close attention to the construction industry and real estate market research.
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