Low-rent housing in the regions will heat up the construction market
The construction of low-rent housing in Latvia could warm not only construction service providers, but also manufacturers of building materials.
The financial institution ALTUM has concluded three new contracts for the construction of low-rent housing in Bauska, Tukum and Jelgava for a total amount of 22 million euros. “Currently, four projects for low-rent buildings with 314 apartments have been approved in several municipalities, where the total amount of the projects exceeds 34 million euros, including ALTUM’s financing of 26.76 million euros,” explains ALTUM board chairman Reinis Bērziņš. He admits that Ventspils, Alūksnes, Cēsis are also interested in low-rent apartment houses.
Construction begins in Valmiera
The first two buildings in Valmiera, which are realized within the framework of the program, in accordance with the requirements of the Cabinet of Ministers’ regulations, will be almost zero energy, five stories high with 120 apartments, with a total living area of 7189.7 square meters, of which the useful area is 87% or 6266 square meters. The average area of one apartment is 52 square meters, while the rent will be a little more than five euros per square meter. All apartments will have finished interior decoration. The project is developed by SIA Valmieras Namsaimnieks, while SIA Monum will build it, and it is expected to be implemented by March 31, 2026. The total cost of the project is 12.1 million euros, of which the ALTUM loan for both buildings is 11.61 million euros, from which it is possible to recover up to 30% of the eligible costs of the project as state aid after the implementation of the project.
It will also be built elsewhere
According to ALTUM’s information, apart from Valmiera, the construction of low-rent multi-apartment buildings is taking place in Bauska, it is planned to build 60 apartment buildings for 6.73 million euros, of which 5.3 million euros is expected to be supported by ALTUM. The project is being developed by SIA KIK Real Estate Bauska, and it will be implemented by June 15, 2026. Construction is planned to start at the end of July this year. Another contract provides for the construction of a low-rent housing in Tukum with 18 apartments for 2.14 million euros, of which 1.6 million euros is ALTUM support. The project is implemented by SIA Tukuma rental houses, and it is expected to be completed by 2026. On the other hand, the third project will be implemented in Jelgava, it is developed by SIA Jelgava rental houses. Its total funding is 13.13 million euros with ALTUM’s support in the amount of 10.31 million euros. There will be 116 apartments in it, and they will be built by the end of 2026. Source of the article here
