There is no point in insulating Soviet-era houses - experts 0 14

This was agreed upon by the chairman of the board of the Latvian Association of Real Estate Transactions (LANĪDA), chairman of the board of Arco Real Estate Aigars Šmits, and economist Guntars Vitols.

Housing prices are rising, the demand for apartments remains stable, and, as is known, not everyone can afford housing in new buildings or take out a loan to build a private house. The market for pre-war houses and Soviet-era buildings remains. However, as experts note, many of them require serious capital investments, and this is not just about updating the facade. Nevertheless, a significant portion of apartment owners is making the decision to renovate, prioritizing insulation. According to Elina Treija, this is the wrong approach.

"If the renovation is done solely for the purpose of insulation, then it is not worth doing. It makes sense if it also concerns safety. We have now reached a stage where the Soviet legacy has become so old that we need to think more about the safety of the houses rather than insulation."

Aigars Šmits shares a similar opinion: "There is no point in insulating an old house if it requires more serious repairs — it's like giving an elderly aunt plastic surgery to tighten her facial skin and saying that she can live comfortably for another 50 years." In his view, there is no economic justification for insulating a building, as the costs are compounded by a long-term loan. At the same time, Šmits believes that it is beneficial for the state to "put a person on credit," as this means that throughout the loan repayment period, the state can count on them as an economically active resident, since "you can never relax at any moment," he added.

Housing issues, according to Treija, are a pressing concern for residents across Europe.

"A significant factor in the demographic decline is that the generation that is now supposed to start families is having difficulties acquiring property. A recent study showed that 30% of the population stated that they never hope to become homeowners."

At the same time, there are many vacant buildings and free housing in Old Riga. Guntars Vitols believes that they should be transferred to private owners, as the state is unable to manage them effectively. "A private owner will always perform better; civil servants have no profit incentive, their salaries do not depend on the results. The state should not engage in property management.