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News

Development of Real Estate Projects on State-owned Land in the Baltic States | LEADELL Newsletter #1 2022

10.02.2022LEADELL

One of the most important conditions for a successful real estate market is legal regulation establishing the procedure for the development of real estate projects on state-owned land.

According to the current legal regulation in Lithuania, no additional fee had to be paid for the possibility to build buildings on the land leased from the state. The lessor of the state-owned land only had to pay a fixed state land lease fee. Therefore, the development of real estate projects on state-owned land did not have increased costs. However, legislation in Lithuania will change substantially on the 1st of March, 2022.

Fee for the development of real estate projects on state-owned land is planned to be applied in all cases when the land of the state is leased for the use of buildings. The exception where no fee is required to be paid for the development of real estate projects on state-owned land will apply when public land is leased for projects of national or regional importance, free economic zones, concessions or PPP projects, port or airport activities.

These changes will not only increase the cost of developing real estate projects on public land but also may encourage real estate developers to consider purchasing the public land.

A similar approach has been adopted in Latvia by encouraging land acquisition concerning the development of long-term real estate projects. The implementation of the principle of unity of land and building is being developed through the regulation, hence only construction of non-residential buildings (engineering structures) is allowed in Latvia on the basis of building rights.

In this LEADELL newsletter, we are providing a brief overview of the legislation on the development of real estate projects on state-owned land in each of the Baltic States: Lithuania, Latvia, and Estonia.

Read the whole Newsletter in PDF file: LEADELL newsletter Development of real estate projects in state-owned la…

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