Latvia has renovated only 4% of the apartment blocks that need it; a €48 million pilot scheme is in preparation

Latvia has more than 39,500 multi-apartment buildings, of which at least 26,600 need renovation according to the State Audit Office (Valsts kontrole), yet only about 4% have been renovated, Latvian public broadcaster LTV reported on 3 November in a piece also carried by LSM. Just over 1,500 projects have been completed since 2009, and 184 are in preparation or under way, according to Ministry of Economics data.

Where renovation happens. Most projects have been carried out in Rīga (215), Liepāja (190) and Valmiera municipality (132). Relative to population, Valka leads with about 40 projects per 10,000 inhabitants, followed by Olaine (33.5) and Liepāja (just under 27), while Rīga has only 3.3.

Costs. According to the State Audit Office report published in December 2025, eligible energy-renovation costs per square metre have risen 127% since 2017, and general construction costs 52%. Residents of apartment buildings pay €360–390 million a year for heating, and in 54% of completed projects the annual heating savings do not cover the loan repayment. Total funding needs are estimated at around €7.5 billion in state planning documents, against more than €20 billion in the State Audit Office's calculation.

What is changing. Renovation depends largely on EU funds, which open only every few years, creating peaks in demand and prices. Mārtiņš Āboliņš, a member of the State Audit Office council, told LTV that the EU's 2050 energy-efficiency target cannot be reached at this pace, but noted that residents' interest has grown. The Ministry of Economics is proposing a pilot scheme in which the state would no longer cover 40–45% of costs but would instead subsidise loan interest, equivalent to a discount of about 20–25%. €48 million has been earmarked for about 185 buildings, but the programme still needs approval.

Context. The December 2025 audit also found that the 3.9% fixed rate offered by development institution ALTUM is higher than in Estonia and Lithuania; the State Audit Office made four recommendations to the Ministry of Economics.

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