To promote housing accessibility and public infrastructure development, the Riga City Council on May 21 adopted new binding regulations. These regulations provide compensation to developers who, in addition to building multi-apartment residential buildings, invest at least €100,000 in the development of public infrastructure—specifically, streets and stormwater drainage systems.
The binding regulations, titled "On the Procedure for Reimbursing Expenses for Public Infrastructure Construction by the Riga State City Municipality", aim to enhance public infrastructure and promote housing availability — a key priority for the state and the municipality.
Full regulation available HERE
"Working more efficiently, faster, and in close cooperation with developers " describes the new program we've introduced in Riga. It allows infrastructure development around new residential centres to proceed more smoothly. New housing is urgently needed in Riga. We want more families to choose Riga as their home, and I believe this new cooperation model will help drive progress in this area and ensure faster, more effective infrastructure development across the city,"
emphasized Riga Mayor Vilnis Ķirsis.
Housing construction is always linked to the need for surrounding infrastructure. To support this, the Riga Municipality will reimburse developers up to 80% of construction material costs, with a maximum of €1 million (excluding VAT), for the development of public infrastructure—such as streets and stormwater systems—that is freely and publicly accessible and located on municipal land. Developers will initially cover the construction costs themselves, receiving reimbursement later from the municipality.
Who is eligible?
- Developers of multi-apartment residential buildings.
- In areas outside the priority development zones set by Riga's Sustainable Development Strategy 2030, the minimum floor area must be at least 7,000 m².
- In priority development zones, the minimum floor area is 3,000 m².
- No floor area restrictions apply for land plots previously alienated by the municipality for residential use.
To qualify, the following conditions must be met:
- Public infrastructure development must be included in the infrastructure owner's technical specifications.
- A valid building permit or formal approval for construction intent must be obtained.
- The investment in infrastructure must reach at least €100,000.
- The residential building and the infrastructure must be completed within three years of the City Council's decision.
To ensure that the infrastructure benefits the broader area—not just a single development—it must meet certain quality and relevance criteria. It should be widely accessible and contribute to the neighbourhood's development by improving street functionality, pedestrian and cyclist comfort, and overall traffic flow. Quality infrastructure enhances the urban environment, improves quality of life, and helps attract residents and businesses.