€2100 per square meter: Hundreds of 'free' apartments with bomb shelters will be built in Riga with the help of Brussels 0 27

The deputies mostly voted in favor of the draft agreement between Rīgas nami LLC and the Riga municipality, under which municipal property will be constructed in a very promising area — Purvciems, on Dzelzavas Street. The completion period is the next 4 years.

How much does it cost?

The chairwoman of the RD Committee on Housing and Environment, Elina Treija (National Alliance), reminded that the preparation began back in August 2025, and on December 23, the Central Finance and Contracting Agency — the main structure under the Ministry of Finance that distributes European Union funds — approved it.

– The project provides for the construction of 242 apartments. Dividing by the square meter of the apartment, it will be about €2100, – said the committee head. – But if we calculate the total area of the building with technical premises, i.e. 9965 square meters, then the construction cost, including VAT, will be €1544. We will start with the design this year, with the largest expenses expected in 2028-2029.

...The building will have social apartments, i.e. not for sale. The average living space will be 30 square meters. Thus, a small apartment will cost Brussels €63,000. The land for the future facility is currently on the balance sheet of Rīgas nami, a company 100% owned by the municipality.

The construction will be supervised by the Department of Housing and Environment from the municipality.

– Have you compared the cost of the project with other constructions in the municipality? – the deputies inquired.

The chairman of the board of Rīgas nami, Ojars Valkers, somewhat vaguely stated that "the prepared indicative estimate is based on forecasts." The procedure for utilizing EU funds and legislation provides for the procurement of materials and works through open competitions.

– Therefore, the actual amount will be reflected in the results of specific procurements, – acknowledged Mr. Valkers. In his estimation, this will show an unpredictable "market offer."

Suspiciously expensive

In a follow-up question, an opposition deputy insisted — but what if it were about private construction?

– The costs vary greatly due to the level of finishing quality and location, – continued the head of the company. – Here we also plan to build a Category II bomb shelter. The price also includes the furnishing of apartments, which is not always automatically offered by private entrepreneurs — such as sanitary facilities and kitchen equipment.

Overall, in Mr. Valkers' opinion, the price per square meter seems "adequate."

– Essentially, it is lower than that of private developers, as there is no profit margin added. Here we are essentially talking about the cost price.

To this, the concerned deputy pointed out that in one of the most prestigious development projects — Panorama Plaza – apartments are sold starting at €2300 per square meter – with all VAT included, with finishing and equipment. And you are proposing to build social apartments for €2100. Therefore, I assume that your costs are significantly higher than that of the entrepreneur who knows how to sell a ready apartment, along with the land underneath it.

– How will this help in making a decision? – Mr. Valkers inquired ironically.

– So that we find out if the price is inflated, – replied the opposition deputy, who is therefore suspicious by default. – You have no land there, and that is 20-25% of the project cost. I doubt you will install Miele or even Bosch equipment. I have seen what social apartments look like.

– The price will be determined by the market offer, – repeated the head of Rīgas nami for those who did not understand. – We are not inflating anything here. We are determining the minimal technical requirements regarding the building.

Publicity and identity

Deputy Vladislav Bartashevich clarified what is included in the budget item "publicity and visual identity" (€25,000) – this includes online announcements, a seminar, a logo. But for what?

"Publicity is a requirement for European funding, – replied the head of Rīgas nami. – This needs to be taken into account and ensured. A maximum amount has been defined here, including informing the residents of the outskirts."

– This project has already caused a stir, – added O. Valkers. – Therefore, video and photo documentation of the project is necessary.

– In my opinion, this is somewhat exaggerated, – believes the deputy. His colleague from the faction reminded that "the city has not built for a long time." A positive idea would be to create a day center for children with special needs on the first floor.

Here, Elina Treija took the floor again — and reported that throughout 2025, 127 social apartments were assigned in Riga, but as of January 1, 2026, there were 748 people in line for this housing. So allocating separate spaces for social centers is not planned.

House in cross-section

Let’s look at an example of what makes up the budget of a social housing project.

The first block — design and supervision, totaling €915,000. Components include:

• development of the construction project, including construction taxes (€520,000, or 3.38% of the total budget);

• engineering surveys — topography, geotechnics (€30,000, 0.2%);

• project justification documentation — concept, description of calculations (€10,000, 0.07%);

• expertise of the construction project (€40,000, 0.26%);

• author supervision (€110,000, 0.72%);

• construction supervision (€180,000, 1.17%);

• publicity and visual identity (€25,000, 0.16%).

The second block — actual construction works. It includes:

• preparation and maintenance of the construction site (€741,414, 4.82%);

• building — structures, facades, interior finishing (€8,874,645, 57.69%);

• specialized works — internal networks and systems (€2,752,249, 17.89%);

• specialized works — external networks, systems (€853,785, 5.55%);

• apartment furnishing (€607,196, 3.95%);

• landscaping (€539,221, 3.5%);

• other works (€101,105, 0.66%).

In total, signed by Mayor Viesturs Kleinbergs (“Progressives”), the total amount is €15,384,615 for one residential building. "The Riga municipality covers €5.38 million," added E. Treija. The rest will be paid by the European Union.