Construction of two low-rent apartment buildings in Valmiera will start to promote affordable housing. This is the second project of construction of rental apartment houses, which is being implemented by 100% capital company of Valmiera Municipality Government – Valmieras Namsaimnieks Ltd. As the business environment in Valmiera develops, the demand for affordable, quality and energy-efficient housing stock remains high. By offering modern housing for rent at low rental prices, the municipality aims to increase the city’s competitiveness in attracting skilled labour.
“We want to promote economic growth in Valmiera by developing industrial areas. However, there is already a shortage of housing in the city to attract new residents and the workforce needed by businesses. At this time, when construction costs are high, the state support programme has been assessed as a good solution to offer comfortable rental apartments at an affordable rent that would be in line with the average salary in the region,” says Jānis Baiks, Chairman of the Valmiera Municipality Government.
On Wednesday, 29 May, an agreement was signed between Valmieras Namsaimnieks Ltd. and MONUM Ltd. for the construction of two new rental houses in Valmiera. The new project will consist of the construction of two almost zero-energy five-storey apartment buildings with 120 apartments. They will be built alongside the existing rental houses. Construction will start in the near future. The total investment for the project is EUR 12 111 850.
“It has been six years since we started offering apartments for rent in the first rental houses. In the meantime, while the private sector has also seen an increase in residential construction, demand for rental housing has remained high. With the new project, we will continue the work we have started so that Valmiera will have new places to live and the city will continue to grow and develop economically,” says Andris Kabraks, Chairman of the Board of Valmieras Namsaimnieks Ltd.
Having assessed the existing demand for residential space in rental buildings, it is planned that the new project will have 52 two-bedroom (40.46-44.02 m2), 58 three-bedroom (54.52-61.67m2), 10 four-bedroom (72.75m2) apartments. Two of them are adapted for people with disabilities. One indoor bicycle parking space is provided for each apartment, and balconies are planned for some apartments. A landscaped area will be created in front of the buildings with recreation areas and a parking lot.
The new rental houses will be built under the support of the national programme for regional housing construction, which is financed by the European Union’s Recovery Fund. It is estimated that the rent for the new residential buildings in Valmiera, including management fees, real estate tax, insurance, and savings, will be ~ EUR 6.00/m2 (subject to change according to the annual average national inflation rate). According to the Cabinet of Ministers Regulation No. 459, a few conditions should be considered when renting out apartments, which are more favorable for potential tenants with lower total household income. There are income “thresholds” for applying for an apartment. The Valmiera Municipal Council has approved Binding Regulation No. 89 “On the procedure for renting out apartments in low-rent housing in Valmiera”, which sets out priority groups for the allocation of rental rights. The regulations can be consulted on the legislation website likumi.lv. Registration for the rent queue is expected to start in early 2025.
*Andris Kabraks, Chairman of the Board of “Valmieras Namsaimnieks” Ltd, Modris Ozoliņš, Chairman of the Supervisory Board of “MONUM” Ltd, Evita Domello, Member of the Board of “MONUM” Ltd, Ilmārs Skādulis, Member of the Board of “Valmieras Namsaimnieks” Ltd