The decision of the Ministry of Environmental Protection and Regional Development (MEPRD) not to approve the new Riga spatial plan will have negative consequences for investors' confidence in the successive spatial planning and development process in Riga. When planning future projects, real estate developers have taken into account that the new plan and the development opportunities included in it will come into force. Instead, the current plan remains in force - it will reduce the attractiveness of Riga in the eyes of investors, hinder the development of future projects and further widen the gap between the city and other two Baltic capitals. The industry is expressing concern regarding the prompt approval of the new plan version.


 
“Real estate developers in Riga have become hostages to the inability of state and local government institutions to agree on measures to restrict gambling, which affects the fate of urban planning. This is not a good signal for investors. Now entrepreneurs have two options - wait until the new spatial plan of Riga enters into force or start the local planning process for their properties in order to try to achieve the same conditions as anticipated by the new Riga plan. In this way, unnecessary bureaucracy will be increased and the investment environment in Riga will deteriorate,” points out Mārtiņš Vanags, Chairman of the Board of the Alliance of Real Estate Developers
 
The new spatial plan of Riga was prepared for nine years. In total, real estate developers submitted about 90 proposals for the development of the Riga spatial plan, and discussions regarding them took place already in 2018 and 2019.
 
“Considering the long process of development and approval of the plan, it seems unlikely that within 8 months - as indicated by the MEPRD - Riga City Council will be able to develop a new version of the plan, including also the Riga historical centre territory. We hope that the Constitutional Court will nevertheless review the decision and approve the currently developed version of the plan,” adds M. Vanags.
 
About NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players in the industry in order to achieve the sustainable development of the real estate industry, represent it in a collective manner at the state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
 
For further information:
Mārtiņš Vanags - Alliance of Real Estate Developers (NĪAA)