Affordable apartments in Riga for rent: state support programme
One of the trends in the global housing market is a lack of affordable supply. This problem affects many countries, including Latvia. Those wishing to rent or buy apartments in Riga find it extremely difficult due to the limited number and rising prices.
The country’s government has introduced a state programme aimed at increasing housing affordability. Riga City Council has joined the initiative, which will help residents become tenants in affordable housing. The programme targets a specific category of citizens – professionals working in the social sector. These are teachers, police officers and social workers. Riga will build about a thousand flats as part of the project. At the same time, the government points out that this number is not enough to cover the existing deficit. The authorities also hope that the housing will help attract specialists, which the city badly needs.
It is worth noting that social workers and teachers have long-needed support. However, the capital’s authorities have not been able to introduce a flat-rate subsidy for this category of professionals in the past.
At present, the number of workers on minimum income in the capital is about 2,300 people. The programme provides for the construction of 1,000 rented apartments, including:
– flats with three or more rooms – 100 objects;
– two-room flats: the local authorities plan to build 400;
– 500 one-room flats.
In addition, the programme provides for the use of land on two streets in the city. These areas will be reserved for the construction of houses.
The developer is the company VNĪ, with which the local government has signed a contract. The implementation of the state programme involves several stages. Seventeen municipalities, including Riga, will participate in the first stage. The apartments will be in operation in 2030.
Government initiatives for apartments in Riga and other cities buyers
The lack of supply in Latvia is driving up prices on the market, making housing unaffordable for a large number of citizens. In the first quarter of 2024, the cost of apartments and houses rose by 6%. In neighbouring Estonia, the figure was 9.2%.
The government sees support for certain groups of the population as one of the options for improving the market situation. These include families with children, military personnel and young professionals. According to the new rules, families with three or more children whose income does not exceed 23,000 euros per family member can expect benefits. In this way, the authorities want to help those who really need it. At the same time, the list of banks offering mortgages to the designated categories of citizens will expand. Loans are extended to completed properties and those under construction.