Although the economy, investment attraction, real estate property development, tourism and other sectors have been affected both globally and domestically by the Covid-19 pandemic, in the coming years there are multiple large scale projects planned to be implemented in Latvia’s capital city. The goal of these projects is developing and promoting economic activity and entrepreneurship in Riga.
This is the picture presented by Riga’s annual economic profile published by Riga Investment and Tourism Agency and which compiles information for businessmen, existing and potential investors, as well as residents about the city’s economic growth and development, investment projects and business development segments, business, transport and other sectors.
Riga’s economic profile for 2022 includes six sections: people, finances, environment, pride, future and Riga in numbers.
Riga is a Baltic metropolis with about one million residents living in the city and surrounding areas. The total number of residents in Riga was 614 618 last year and 621 120 in 2020.
An average Riga residents is 42 years old with an average monthly wage of EUR 1 394. Riga’s population consists of 47.5% Latvian-speaking, 35.8% Russian-speaking, 3.6% Belarusian-speaking, 3.4% Ukrainian-speaking and 1.7% Polish-speaking residents.
95% of Riga residents know at least one foreign language, 54% of residents know at least two foreign languages. 38.7% Riga’s residents have higher education and 37.1% have secondary education. In 2020 higher education institutions and colleges in Riga and Latvia had 78 548 students of which 9 371 or 12% were foreign students. The majority of students (21%) are of the 29 to 39 years age group.
The capital city plays a dominant role in Latvia’s economy and entrepreneurs. Riga hosts 76.3% of all economically active enterprises in Latvia. The economic sectors in demand the most in the capital city employee number-wise is services (179 091 workers), wholesale and retail trade (85 618 workers) and industry (46 971 workers), operations with real estate (16.5%) and wholesale and retail trade (14.8%). Riga’s biggest financial companies include SEB Bank, Swedbank and DNB Bank.
34.2% of all people employed in Latvia or 305 400 residents are employed in Riga. 23.6% or 274 496 of all economically active residents in Latvia live in Riga. The average monthly wage of working residents in Riga job-wise go as follows: EUR 1 937 in the administrative and service sector; EUR 1 866 in the Information and communication services sectors, EUR 1 413 in the electricity, gas supply, heating and air conditioning sector – EUR 1 413, EUR 1 211 in the health and social sector, EUR 913 in the education sector, and EUR 726 in the accommodation and catering sector.
In the near future Riga is planned to be made into the central Baltic transport hub through several massive projects to help promote great development opportunities for Riga’s centre.
Important investment and real estate development projects are aimed at making Riga more attractive to investors, international companies, digital nomads, foreign students, as well as tourists and local residents.
Here are some of the most important projects in the capital city that are already in development:
Rail Baltica. One of the biggest projects. Its aim is constructing a new European standard width railway line in the Baltic States. The project’s goal is integrating Baltic States into the European railway network, connecting Helsinki, Tallinn, Pernava, Riga, Panevėžys, Kaunas, Vilnius and Warsaw. The project’s planned costs reach EUR 5.8 billion. Rail Baltica is also planned to secure 36 000 new jobs.
Construction of Riga’s eastern highway’s section on Ieriķu Street – Vietalvas Street is one of the biggest transport infrastructure projects in Riga’s recent history. Its costs reach EUR 37.8 million. Its goal is providing a bypass around the city centre and to reduce the presence of trucks in Riga’s historic centre and areas in Purvciems.
Press Centre Quarter. As part of the 1st stage of the project it is planned to develop A-class office building, a multi-functional centre and a four star hotel. A-class office centre’s total area of 26 500 m2 will combine retail trade, sports and medical services, a wide catering area, as well as a three-level parking lot, as well as the first roof-based football field in the Baltic States.
Knowledge Mile – innovation and science infrastructure in Pārdaugava. As part of the project, it is planned to establish student towns, creating a territory that promotes science, studies, entrepreneurship and real estate market. The Knowledge Mile is part of Riga’s biggest universities, their branches and dormitories, as well as H2O 6 Architecture and Media Centre.
City centre neighbourhood – there are plans to develop Riga’s centre by constructing modern office space in order to attract foreign investments. Multiple buildings are either finished already or are planned to be finished in the near future, including ORIGO ONE, which is one of the newest and most modern A-class office space projects implemented using EUR 70 million investments from Linstow Baltic. NOVIRA PLAZA four-storey complex is scheduled to be completed by June 2023 (the project has attracted investments worth more than EUR 55 million). KIMMEL quarter is a project by Swedish real estate developer Eastnine, which will combine an office bureau, store and service centre, as well as a convenient meeting place in the city centre. In 2022-2023 it is also planned to construct THE PINE, which will be the first wooden office building in Baltic States, as well as a zero emission and climate neutral building with a total area of 19 900 m2.