NĪAA: The new rental law will allow approximately 100 million euros to be invested in rental apartments every year

With the entry into force of the new rent regulation, both real estate developers and investment funds are expected to invest in the construction of new rental houses and the renovation of historic buildings, with the total amount of investment reaching up to 100 million euros per year, according to the data collected by the members of the Real Estate Developers Alliance (NĪAA). The law will enter into force this year. on May 1, but in order to ensure the full operation of the new rent law, amendments to the Law on Civil Procedure and the Law on Apartment Property are still needed, as well as a reduction of the tripled land registry fees for legal entities that purchase apartment property. The new Residential Premises Rent Law and amendments to the Civil Procedure Law will allow the rental market in Latvia to become significantly more active and will introduce real changes in the economy. With the new regulation, there will be greater opportunities to combat the shadow economy in the rental market and reliable information about the concluded rental agreements will be publicly available. Also, the new regulation will ensure more balanced relations between tenants and lessors – if necessary, disputes can be resolved within a reasonable time, as well as significantly lower risks for investors, as well as greater availability of housing for tenants, according to NĪAA. “The previous rent law was adopted in 1993 and was irretrievably outdated. This hindered the development of new rental housing and the long-term investment of investment funds, including pension funds, in rental housing. Along with the new rent regulation, significant investments in the construction of new rental houses and the renovation of historical houses are expected,” predicts Mārtiņš Vanags, the chairman of the board of the NĪAA.

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