Continuing the development of the country's first public-private partnership (PPP) programme to promote affordable housing, five Latvian local governments and SJSC “State Real Estate” (the SRE) have signed agreements on joint participation in Lot 1 of the PPP programme. This step officially launches the practical work of creating 1,170 new energy-efficient rental apartments for professionals in Riga and regions.
According to the agreement, the local governments of Riga, Tukums, Jēkabpils, Cēsis and Gulbene authorise the SRE to launch and carry out the procurement procedure for the project partnership, while the SRE as the programme implementer starts preparatory works for the procurement procedure for attracting a private partner. The signing of the agreement follows swiftly on the decision of the Cabinet of 22 December 2025 approving the progress of Lot 1 of the programme "Rental Housing for Latvian Professionals".
"The signing of agreements with five Latvian local governments – Riga, Tukums, Jēkabpils, Cēsis and Gulbene – marks a clear transition from planning and calculations to practical implementation. Affordable, modern, energy-efficient housing is often the deciding factor in a professional choosing to work in a region, and with this programme we are working with local governments to tackle a very specific and tangible problem. By 2030, almost 1,200 Latvian families of professionals will receive the keys to their new rental homes – an investment in both people and the local economy," said Mr Arvils Ašeradens, Minister for Finance.
"The signing of the agreement with the local governments is a critical milestone when we have moved from the planning phase and calculations to practical steps. Together with an international team of experts, we have created a model that will allow us to provide modern housing for teachers, doctors, police officers and other professionals in sectors important for the state, as well as for the professionals needed by regional companies by 2030," says Mr Renārs Griškevičs, Chairman of the Board of the SRE.
The agreements concluded provide for the construction of 1,170 apartments under Lot 1 of the programme:
- In Riga: 732 apartments (at Tīnūžu, Mežrozīšu and Ozolciema Streets)
- In Tukums: 150 apartments (at Smilšu Street)
- In Jēkabpils: 140 apartments (at Celtnieku Street)
- In Cēsis: 100 apartments (at Festivāla Street)
- In Gulbene: 48 apartments (at Malienas Street)
The next step in the programme is the launch of an international PPP procurement, to be carried out during 2026, to attract a private partner for the implementation of this availability-based PPP contract with a planned duration of 25 years. The private partner will have to ensure the availability of the facilities according to the DBFMO approach: Design, Build, Finance, Maintain, Operate.
In parallel, the SRE in cooperation with consultants and the Council of Europe Development Bank (CEB) is working on the preparation of Lot 2 of the programme for other interested local government.
Lot 2 of the programme evaluates the construction of rental housing on highly developed land plots in 11 cities: Sigulda, Rēzekne, Kuldīga, Olaine, Ķekava, Smiltene, Aizkraukle, Alūksne, Jelgava, Liepāja, and Ventspils.
The programme is implemented on a “private partner designs, builds, finances, maintains, and operates” model. State support will ensure that rents for professionals will be affordable and in line with the affordability of the average income level in the region or national city. At the end of the partnership period, the houses and land remain the full property of the local government.
The project is implemented in close cooperation with experts from the European Investment Bank (EIB) and the Council of Europe Development Bank, leveraging international know-how and investment for the development of the housing sector in Latvia. Up-to-date information on the programme is available on the SRE website: https://www.vni.lv/projekti/ires-majokli-latvijas-specialistiem
