Is Riga’s City Centre Really Dying? 

But why is a city centre so important in the first place?

Anita Beikule from the urban planning firm G93 explains:

“A city centre is crucial as the economic, cultural, and social core that sets the pace for the entire city and shapes its identity. It is not just a physical location – it is a symbol that embodies a sense of belonging and pride in one’s city. Even though many, especially families with children, choose to live in the suburbs, their daily lives remain closely connected to what the centre provides – work, public transport, culture, leisure, and social interaction. It is where businesses, government institutions, public events, historic heritage, and major transport hubs converge, maintaining the city’s unity and vitality. It must be remembered – without a vibrant and functioning centre, a sustainable suburban life is also impossible.”

So, what does Riga’s city centre actually look like today?

First of all, as highlighted by the organizers of the recent @Mad City urban planning event, the population of the Centre has actually grown by nearly 6% over the past 10 years.
So the Centre is not fading away – there is still strong demand for housing and workplaces here.

Secondly, since 2020, data from Kivi Real Estate shows that over 230 buildings priced above €300,000 have been sold in the Centre.

Why is this significant?

A notable share of these properties have been transformed into well-maintained, renovated residential buildings, often sold off as apartments. Others have become modern rental properties or office spaces. In any case, once sold, these buildings start to be used much more effectively.

Additionally, the state has historically owned a considerable portfolio of properties, including several central buildings that were not properly maintained or fully utilized for various reasons. Here, too, we can see positive changes – over the past few years, the “State Real Estate” (VNI) has been successfully auctioning off these properties, with benefits for everyone involved:

1. The state is relieved of the burden of maintaining large, unnecessary buildings in the city centre.
2. Private investors gain opportunities to acquire well-located properties and invest in their restoration, often turning them into beautiful residential buildings.
3. Centre residents benefit from higher-quality, more modern spaces.

1. Eksporta iela 6
2. Brīvības iela 68
3. Valdemāra iela 17a
4. Merķeļa iela 11
5. Kaļķu iela 24
6. Stabu iela 18, among others.

One striking before-and-after example of such transformation is the “Raiņa Nams” project at 27 Raiņa Boulevard.
It’s almost unbelievable that such a magnificent building, in the heart of one of Europe’s most beautiful capitals, was once left without fulfilling its true potential. 

But what needs to happen for an investor to notice a neglected or underused building and decide to invest?

But what needs to happen for an investor to notice a neglected or underused building and decide to invest?
First, as Linards Veide, who has sold dozens of such properties over the years, points out, Riga is unique in the Baltic region in that such opportunities still exist and are accessible at relatively reasonable prices. In neighbouring capitals, such offers are much rarer and more expensive.
Second, many of these buildings are located in fantastic spots – a major cornerstone of successful real estate development.
Third, in every economic cycle, when the market becomes highly active and construction booms, building costs can rise sharply. Working with existing structures often proves to be more practical and predictable, both in terms of costs and completion timelines.

Of course, as always, the devil is in the details. Not every building in the Centre can be brought back to life by investors.

Which buildings tend to be overlooked?

Usually, those that are in such poor condition that renovation would cost more than constructing a new building from scratch. Additionally, properties with unresolved shared ownership issues often become unattractive to investors.It’s also essential to note: for the Centre’s renewal and development to become a lasting trend rather than just a short-lived phenomenon, a special balance must be found between preserving historical value and meeting modern needs. Sometimes, heritage protection status does not save a building but dooms it – restoring such properties simply becomes economically unviable. In other cases, overly stringent heritage regulations can prolong projects for years, eventually eroding the economic justification for restoration and allowing beautiful structures to naturally decay, becoming ever more challenging for restoration specialists with each passing year.

Finding the perfect balance between careful historical preservation and allowing developers enough flexibility seems destined to remain an ongoing discussion.