Major Swedish Investment Planned for New Ogre Apartment Village

Kilen Baltic Properties, a Swedish capital company operating in Latvia, is preparing to launch an ambitious apartment village development project. The land plot “Šipas” in Tīnuži Parish, Ogre region, has been selected as the future construction site. The plot is currently undeveloped, but from the investors’ perspective, the territory has strong strategic and long-term growth potential. Located only about a 20-minute drive from Riga, it could become a sought-after place to live. If implemented, the project would foresee investments of at least 35 million euros, while simultaneously expanding the local housing stock, promoting commercial activity, and creating dozens of new jobs in the region. 

Kilen Baltic Properties is a subsidiary of the Swedish company Kilenkrysset AB. The group has been present in Latvia since 2020, when another subsidiary - Kilen Baltic - was established and later opened a modern reinforced concrete structure factory in Ikšķile in 2022. The company initially specialized in producing reinforcement frames for the Stockholm Tunnel project, and strong demand, together with Swedish investor interest in the Baltic construction sector, contributed to the factory’s establishment. Investments in the factory’s construction and equipment reached nearly 4 million euros. With a production area of 2,300 m², it is now one of the most modern reinforced concrete production facilities in the Baltics. 

Kilen Baltic produces a wide range of precast elements, including walls, plinth elements, foundation and column components, stairs and more. Although the construction market in Sweden has slowed in recent years, reducing production volumes, the company has maintained a steady development path. This year, turnover is forecast to reach approximately 2 million euros—double that of the previous year. 

Following the long-term strategy of the parent company and responding to investor interest in further expansion in Latvia, Kilen Baltic Properties was founded. One of its current priorities is the development of the “Šipas” residential village project. 

Location potential and market demand 

The planned village is situated in a strategic location - close to Riga, near the Daugava River, and with convenient access to the railway and national road network. The area’s potential will be further strengthened by the planned Rail Baltica terminal, which could become a strong driver of regional development, making this one of the most promising emerging residential locations in the Riga metropolitan area. As seen previously in Ikšķile, where real estate demand significantly exceeds supply and new construction areas are scarce, a similar development pattern could be expected here. 

Roberts Kaufiņš, a member of the board at Kilen Baltic, notes: “This is a place where investors saw potential before others. It can become a new, modern, and sought-after residential area, especially for families who want to live in a green environment while maintaining daily connections with Riga.” 

The main challenge – land status and the pace of regulatory procedures 

The initial vision for the project foresees the construction of 14 apartment buildings, along with commercial premises and necessary infrastructure, creating a full-fledged living environment for residents and service providers. However, despite the clearly defined investment intent, the project is currently facing significant challenges. The land earmarked for the village is officially classified as agricultural territory, which does not permit construction of this scale. At the same time, a municipality-approved detailed plan allowing construction at the site is in force - creating a legal conflict. 

To ensure the project’s progress, the company is actively working to obtain village status for the territory, as well as to resolve other regulatory obstacles. Several institutions are involved in the process - the municipality, the Ministry of Economics, and The Ministry of Smart Administration and Regional Development. While the idea is conceptually supported, the pace of decision-making is slower than investors would prefer. With the development of the new territorial plan for the Ogre region, the company hopes for positive changes that would enable a more active project development timeline and allow construction to begin soon. 

The “Šipas” project as an indicator of Latvia’s investment environment 

In the company’s view, Latvia still requires significant improvements in real estate development regulations to attract foreign investment more effectively. Company representatives note that in Sweden it typically takes just one month from acquiring land to starting construction. Lithuania, too, has recently introduced measures that substantially streamline industrial construction processes. By contrast, real estate developers in Latvia face relatively lengthy and complex coordination procedures, which significantly slow the inflow of investment. 

“Investors have capital - what’s missing are projects where it can be deployed efficiently. If regulations and processes do not change, Latvia risks remaining one of the slowest-growing markets in the region, limiting substantial investment opportunities,” company representatives emphasize. 

The company believes that the “Šipas” project may become a litmus test for the future of Swedish investment in Latvia. A positive decision and successful progress in the construction process would signal a stable and predictable investment environment, fostering stronger interest in the Latvian market. Alongside this project, Kilen Baltic Properties is also evaluating other potential development directions - such as the construction and leasing of industrial buildings, a long-term proven business model in Sweden, as well as new residential projects and industrial park developments in other territories, including the Ogre region.