Insulation of Soviet-era buildings does not pay off, but there is no alternative – real estate expert
Aigars Šmits, chairman of the Latvian Real Estate Transactions Association (LANĪDA), stated in an interview with LSM that the cost of insulating Soviet-era apartment buildings is close to the price of a new apartment, but residents have no choice as they cannot afford new builds.
Insulation is a pressing issue in Latvia's housing sector, especially for apartment buildings constructed during the Soviet era. Many residents live in these buildings because they cannot afford to purchase an apartment in new developments. As Aigars Šmits, chairman of the Latvian Real Estate Transactions Association (LANĪDA), indicated in an interview with LSM, the cost of insulation work is so high that it approaches the price of a new apartment. He emphasized that such an investment does not pay off, yet there is no alternative – residents have little option but to proceed with insulation unless they can move to new builds. Šmits' comments highlight the challenging situation in Latvia's real estate market, where residents of older buildings are forced to spend significant sums to improve their living conditions without a return on investment.
