Housing Market Portrait: Riga, Latvia

Affordability and Market Trends

Riga's housing market presents a mixed picture of affordability. While not among the most expensive European capitals, housing costs in Riga have been steadily increasing in recent years. The market has shown resilience despite economic challenges, with apartment prices in Riga decreasing by 1.2% in 2023, following a 4.5% increase in 2022.

The median price per square meter to buy an apartment in Riga ranges from €700 to €1,500 for older apartments and €1,800 to €4,700 for new apartments in central areas. This price range puts Riga in a moderate affordability bracket compared to other European capitals, though it may still be challenging for many local residents.

City Initiatives for Affordable and Sustainable Housing

Riga is actively addressing the challenges of affordable and sustainable housing through various initiatives:

Increasing Affordable Housing: The city aims to boost investment in affordable housing, develop a formal rental market, and implement strategic policy reforms.

Renovation and Energy Efficiency: Riga is focusing on renovating existing housing stock, particularly Soviet-era buildings. The SUPERSHINE initiative in the Āgenskalns district is promoting sustainable renovation practices and public-private partnerships.

Public-Private Partnerships (PPPs): Riga is leveraging PPPs to finance new affordable housing construction and maintenance. A significant step is the establishment of a revolving fund for affordable housing.

Citizen Involvement: The Desire project engages residents in the redesign of Soviet-era apartment blocks and outdoor areas, fostering community involvement.

Targets and Medium-Term Planning

Riga is developing a medium-term housing plan for 2024-30, which includes:

Incentivizing new, modern housing developments

Upgrading existing housing stock through co-financing programs

Ensuring all citizens have access to safe, affordable, and environmentally friendly housing

Cooperative Housing Landscape

The concept of cooperative housing in Riga is not as prevalent as in other European cities. However, there's a unique form of collaborative ownership through "garage cooperatives," which have evolved from car storage spaces to include workshops and living spaces.

While there's no specific data on the market share of housing cooperatives in Riga, there's a rising interest in cooperative housing models, particularly among young adults facing challenges in accessing affordable housing.

Support for Housing Cooperatives

Currently, Riga doesn't have specific programs or activities to promote or financially support traditional housing cooperatives. However, the city's focus on renovating post-war housing districts and the establishment of apartment associations show potential for incorporating cooperative housing models in the future.

Organizations like Free Riga, which promotes temporary use of vacant and underused buildings, offer a platform for social and cultural initiatives that could evolve into more formal cooperative housing structures.

Conclusion

Riga's housing market is at a crossroads, balancing between moderate affordability and the need for sustainable, inclusive housing solutions. While cooperative housing is not yet a major force, the city's initiatives and growing interest in collaborative living models suggest a potential shift towards more diverse and affordable housing options in the future.