Each country has a number of indicators and areas that determine the economic situation and well-being of the population. One of these industries is the construction sector. The revival in the construction sector indicates of economic development in the country. The construction sector around the world has a special share in economic development and, in particular, strengthening the sustainability of the economy. This sector is a type of activity from multilateral sub-sectors. The development of the construction sector leads to the revival of a number of industries: the furniture industry, the construction materials market, the banking sector, the labour market. In this view researching of this field and theme is actual. The main industries in the Latvian construction market are infrastructure construction, commercial construction, industrial construction, institutional construction and housing construction. In terms of 2022, the largest share is occupied by the construction of infrastructure. The revival of the construction sector in Azerbaijan is due to oil revenues. Increasing investment in the development of the construction sector is one of the priority tasks of the government and certain measures are being taken in this direction. Research focus: The aim of the study is to identify factors influencing the development of the construction sector in the two countries. To this end, as in the period of research, were taken 2000-2022 years and observations were made on the changes that were taking place in this sector. Research methods used: During the investigation, statistical indicators of Latvia and Azerbaijan in the field of construction were provided. The results were obtained using methods of observation, analysis, synthesis, generalization. The results and the main conclusions and recommendations: The analysis identified factors affecting the construction sector of both countries by study period and presented the results and recommendations.