Intense housing scarcity discovered in Vidzeme, Latvia
In Latvia, a growing demand for apartments is being felt across various municipalities, with an estimated need of around 2000 new units. While the construction sector is showing signs of growth, with initiatives underway in residential building reconstruction and infrastructure improvements, there is no direct public information indicating how Cēsis, Alūksne, and Valmiera are specifically addressing this demand, based on the available data.
The Valmiera municipality has expressed interest in applying for a national program to potentially build apartment buildings, but a regional issue in Latvia persists, where banks are reluctant to provide loans for regional housing. This has also hindered private investors from building apartments in Valmiera. The municipality, however, does have a significant housing deficit, requiring several hundred new apartments.
In Valmiera, there are ongoing projects in the renewable energy sector, such as the planned solar park near Matīši village. However, there is no publicized apartment construction project linked directly to meeting the apartment demand.
In Alūksne, the newest apartment building was constructed more than 30 years ago, and at least 100 professionals will need apartments in the near future. The National Armed Forces have drawn attention to the need for new housing stock in Alūksne, with entrepreneurs expressing the need for new apartments due to the requirement for new employees and specialists.
Cēsis, another municipality under scrutiny, has seen one developer enter the Altum program, with Cēsis having a quota of 60 apartments. A recent transaction in Cēsis involved the municipality disposing of a property in Cīrulīši, where old dormitory buildings were located, with an investor planning to redevelop them and develop new apartments.
The forthcoming Private Public Partnership Bill, financed with the support of the European Investment Bank, will be available for 18 municipalities to apply for. This potential solution could help municipalities facing a need for new apartments, although the specific criteria for who will live in the houses and the co-financing details have not been specified.
Precise calculations for construction are expected to be presented to the government in August, with the first 1000 apartments planned to be built by 2030. Each municipality has its own readiness for construction, with the financial situation also being a factor.
In conclusion, while there are signs of growth in the construction sector in Latvia, more specific information is needed to understand how Cēsis, Alūksne, and Valmiera are addressing the demand for 2000 new apartments across the country. It is possible that these plans are in earlier stages or handled through broader national initiatives not detailed in the sources.
- The Valmiera and Cēsis municipalities are both actively seeking ways to address their housing deficits, with Valmiera expressing interest in a national program and Cēsis having a developer enter the Altum program, aiming to develop new apartments.
- In Alūksne, the lack of recent apartment construction has left a need for at least 100 new apartments for professionals, prompting the National Armed Forces and entrepreneurs to call for new housing stock, yet no pubicized projects have been linked directly to meeting this demand.
