Riga Spatial Planning should be approved in 2021 to disperse uncertainty for investors
The Riga Spatial Plan for 2030, developed by the City Development Department of Riga City Council, was planned to already be finalised at the end of 2018. The decisions included within it strongly influence the implementation of real estate investment projects in Riga, regulating, for example, requirements for building areas and infrastructure objects. However, at the end of 2020, the plan has still not been approved, and members of the Alliance of Real Estate Developers (NĪAA) are concerned about the delay in the plan. Postponing the adoption of the plan creates growing uncertainty for investors about the issues of object planning, directly hindering investment in real estate in Riga.
The members of the NĪAA emphasise that the adoption and entry into force of the Riga Spatial Plan for 2030 (RTP2030) is an important starting point for the development of the sector and planning of future work. Currently, every developer has to adapt to the uncertain situation and plan works, taking both the current and future spatial planning of the capital into account, creating uncertainties and potential shortcomings in the projects.
"Many suggestions from the NĪAA have been taken into account in the development of RTP2030 so far, and the industry is pleased about this. However, the final version of the plan is still not adopted, although 2030 is a very near future looking from the perspective of the real estate industry. In the current situation, developers have to postpone their plans indefinitely until a final decision is made, thus losing time to construct new buildings in Riga and facilitating the diversion of investments to other operating countries with more predictable circumstances. Therefore, we ask for the prompt adoption of RTP2030, which hinders the construction of modern, sustainable, and multifunctional residential buildings and office space in Riga!” emphasises Mārtiņš Vanags, Chairman of the Board of NĪAA.
It is the predictability of the real estate investment environment that is one of the main factors that helps to attract large investment projects to a particular city. In order for the development of housing, offices, and other buildings in the construction segment to continue in Riga, it is urgent to introduce clarity in the city plan, giving investors a signal that there is a safe environment for planning long-term projects.
About the NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players of the industry in order to achieve the sustainable development of the real estate industry, represent it in a collective manner on a state and local government level, as well as emphasise the role of real estate developers within the economy of Latvia.
For further information:
Mārtiņš Vanags - Alliance of Real Estate Developers (NĪAA)
martins.vanags@niaa.lv
The members of the NĪAA emphasise that the adoption and entry into force of the Riga Spatial Plan for 2030 (RTP2030) is an important starting point for the development of the sector and planning of future work. Currently, every developer has to adapt to the uncertain situation and plan works, taking both the current and future spatial planning of the capital into account, creating uncertainties and potential shortcomings in the projects.
"Many suggestions from the NĪAA have been taken into account in the development of RTP2030 so far, and the industry is pleased about this. However, the final version of the plan is still not adopted, although 2030 is a very near future looking from the perspective of the real estate industry. In the current situation, developers have to postpone their plans indefinitely until a final decision is made, thus losing time to construct new buildings in Riga and facilitating the diversion of investments to other operating countries with more predictable circumstances. Therefore, we ask for the prompt adoption of RTP2030, which hinders the construction of modern, sustainable, and multifunctional residential buildings and office space in Riga!” emphasises Mārtiņš Vanags, Chairman of the Board of NĪAA.
It is the predictability of the real estate investment environment that is one of the main factors that helps to attract large investment projects to a particular city. In order for the development of housing, offices, and other buildings in the construction segment to continue in Riga, it is urgent to introduce clarity in the city plan, giving investors a signal that there is a safe environment for planning long-term projects.
About the NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players of the industry in order to achieve the sustainable development of the real estate industry, represent it in a collective manner on a state and local government level, as well as emphasise the role of real estate developers within the economy of Latvia.
For further information:
Mārtiņš Vanags - Alliance of Real Estate Developers (NĪAA)
martins.vanags@niaa.lv