Construction, Investments, Latvia, Real Estate

In 2014, investments in new real estate projects came to EUR 150 mln , but they dropped to EUR 125 mln  in 2015, and are expected to further shrink to roughly EUR 100 mln  this year, Vanags said, adding that he was speaking of investing in new development projects, and not heat insulation, renovation and other construction works.

"We are talking about a serious crisis, and it started right after the new construction regulation came into effect," Vanags said.

He indicated that one of the main reasons for this investment reduction was an excessive administrative burden and red tape.

Edmunds Valantis, director of the Construction and Housing Department at the Economics Ministry, indicated that the ministry has been busily working to simplify and speed up the construction process.

"A number of measures are being planned – we are busily working to reduce the time needed to get construction projects approved by construction authorities, the construction information system is in the process of upgrading, so that construction projects could be worked out and approved electronically," Valantis said.