Builders Association: Apartment prices will increase by 20% in 2024

2024-01-21 09:53:00, Ekonomi CNA

Builders Association: Apartment prices will increase by 20% in 2024

Illustrative photo

The Association of Builders of Albania predicts for the year 2024 an average increase in apartment prices by 20% in Tirana, as the increase in taxes, after the change in reference prices, will affect construction costs.

Even for properties in coastal areas, it is expected that there will be an increase in prices due to the increase in taxes. At the end of 2023, the Municipality of Vlora proposed to the Municipal Council for approval, the increase of the infrastructure impact tax from 4% to 6%.

"In construction, direct costs will not be higher, while the impact of taxes from the government is expected to be increasing. If the maximum infrastructure impact tax (8%) is applied in Tirana today, some cities, such as Vlora, have questioned the increase of this tax from the current 4% to 6%.

The changes in the reference prices to date have had an impact only in the city of Tirana, with the increase in the reference price in the entire territory of the capital, which is expected to increase the cost of construction by an average of 40% more.

Of course, this increase in costs will be accompanied by higher prices. I believe the price will increase by 20% on average", says the chairman of the Association of Builders of Albania, Erjon Harizi.

The flow of constructions is expected to be high in the capital as well. In 5 years, namely the period 2018-2022, according to the data of the draft budget of 2024, the Municipality of Tirana has collected 32.9 billion ALL from the infrastructure tax for new constructions.

Collections from this tax have increased after 2018. In 2022, from this tax, the largest Municipality in the country collected 7.4 billion ALL. The expected receipts from this tax for 2023 are predicted at 7 billion ALL.

The collection forecasts for this tax, referring to the draft budget data, are expected to be in the amount of 6.3 billion ALL in 2024. In 2025-2026, the collection will be from 6.5 billion ALL.

In relation to the draft budget, the Municipality of Tirana underlines that the planning for the collection of this tax presents difficulties, since the realization depends on the applications, which are the object of the development of the real estate market.

For the planned period, the income from this tax is expected to rely mainly on the new developments that are expected to be added to Tirana in the well-planned area of ??New Boulevard, where the Detailed Local Plan has also been approved by the National Council of the Territory, which paves the way for development.

The infrastructure impact tax from new constructions is subject to all entities that seek to be provided with development permits and construction permits for residential, administrative, production, service and other facilities.

The structure in charge of this tax is the General Directorate of Planning and Territorial Development, which, while accepting the requests, examines them and, after approval by the holder, also performs the clearance of this permit against the prior collection of the value according to legal provisions.

For builders with unjustified costs, the sector is also burdened by other taxes, including the 3% social housing contribution tax, inert waste taxation.

For this reason, after the entry into force of the increase in the reference prices on which several taxes are calculated, including the building tax, the infrastructure impact tax, the education infrastructure tax, in the month of September, in the letter that the Association of Builders sent Prime Minister Edi Rama, suggested the revision of the methodology for the calculation of the infrastructure impact tax.

Builders proposed that the value of the tax be calculated on the cost of construction and not on the value of the sales reference price, divided by area.

Among other things, they also raised concerns about the land tax that for 10 years, according to the Association of Builders, is an unfair practice, based on the decision adopted in 2015 "On the approval of requirements for the management of inert waste" and that of 2005 -s "For the approval of the Albanian waste classification catalog", according to which, construction entities are obliged to deposit in landfills against payment even the uncontaminated soils that come from excavations. The association also demanded the repeal of the law on social housing contribution, calling it unconstitutional.

For the chairman of the Association of Builders, Erjon Harizi, the increase in costs from many absurd taxes on which the builders have been charged will continue to affect the sales prices for buyers even in 2024.

"On construction permits, a 3% tax is applied to the homeless, in fact no homeless person benefits from this tax. There is also a high cost from the land tax that builders pay in licensed landfills, i.e. the tax on uncontaminated land.

This is absurd, also the fee charged is too high. This tax also has its own impact on the price of an apartment.

Construction contributes about 11% to the Gross Domestic Product, but in recent years, a decrease in profit from year to year has been observed in the construction sector.

This has mainly come from the 10-fold increase in taxes in the construction sector, thus bringing about a significant increase in the price of apartments and therefore, for a part of the population, buying an apartment becomes a mission impossible.

The increase in taxes ultimately affects the final buyer", underlines Mr. Hariz.

Real estate agents expect price appreciation in coastal areas

Last year marked a drop in demand for apartments according to real estate agents. Demand was hit more for expensive properties, mainly those with prices above 1,500 euros/m² located close to the center.

Përveç çmimeve të shtrenjta, duke qenë se pjesa më e madhe e pronave për banim blihen me financime bankare, nga agjentët e pasurive të patundshme u vlerësua se edhe rritja e normave të interesit u reflektua negativisht te tendenca e kërkesës.

Edhe për vitin 2024, agjentët e pasurive të paluajtshme nuk presin në tërësi rritje të kërkesës. Jonian Antoni, CEO i “Century 21 Albania”, thotë se dy tregjet kryesore të shitjes së pronave, siç është Tirana dhe zonat bregdetare do të vijojnë të mbeten më të kërkuarat.

“Sipas gjithë të dhënave që kemi, edhe në vitin 2024 parashikohet e njëjta kërkesë me 2023. Përgjithësisht janë dy tregje që po ecin mirë dhe kanë kërkesë të konsiderueshme.

Tregu i Tiranës, i cili në katër vitet e fundit ka pasur ritme mjaft të larta dhe kërkesë shumë të madhe dhe tregu i bregdetit, i cili i ndikuar dhe nga blerjet e shtetasve të huaj, diasporës dhe vendit, ka qenë në ritëm të lartë mbi çdo parashikim.

Sipas të dhënave të databazës sonë, edhe për vitin 2024 do të vijojë të ketë kërkesë të lartë, e cila vjen që në fund të 2023-s dhe konkretizohet gjatë vitit 2024”, pohon ai.

Tendenca e kërkesës për apartamente në kryeqytet vijon të mbetet e lartë që prej vitit 2022, sipas Jonian Antonit, nga agjencia imobiliare “Century 21 Albania”, e ndikuar nga imigrimi i brendshëm, rritja e pagave dhe stoku i lartë i ndërtesave të ndërtuara në periudhën para ‘90.

Edhe drejtuesi i agjencisë së pasurive të patundshme, “Future Home” Fatjon Hysenbelliu, parashikon se gjatë 2024, trendi i kërkesës për prona do të jetë i njëjtë si vitin e kaluar.

“Kërkesa gjatë vitit 2024 pritet të jetë e njëjtë me atë të dy muajve të fundit, që ka një stacionim të investimeve masive, siç ndodhi edhe në 6-mujorin e parë të vitit 2023”.

Sipas tij, blerësit kryesorë do të mbeten emigrantët, ku avantazh kryesor do të jetë blerja e pronës për qëllime investimi. “Gjithmonë ata marrin çmim dhe asetet me pozicionet më të mira në çdo zonë, apo rezidence ku investohen”.

Për çmimet e shitjes, drejtuesit e agjencive të pasurive të patundshme përsërisin se nuk pritet të ketë rritje.

“Gjatë 2024 pritet që çmimet të qëndrojnë në këto nivele. Do të ketë një stacionim dhe duket sikur tregu i ka pranuar rritjet e fundit dhe do të operojë me këto vlera të paktën për pesë vitet e ardhshme.

Por sipas ecurisë së tregut jam optimist në mënyrën sesi po zhvillohet Tirana, duke parë rritjen e turizmit dhe investimet nga të huajt”, nënvizon Fatjon Hysenbelliu, nga “Future Home”.

Jonian Antoni nga “Century 21 Albania”, thotë se në vitin 2024 pritet të ketë rritje të çmimeve të pronave në zonat bregdetare. “Çmimet e pasurive të paluajtshme kanë qenë stabël gjatë vitit 2023. Rritjet kryesore të çmimeve ndodhën në vitin 2022.

Pas kësaj periudhe, tregu ka pasur kërkesë të lartë, por jo rritje çmimesh. Nga ana tjetër, tregu i bregdetit ka vijuar marshimin e tij, në këtë treg kemi pasur rritje të vazhdueshme si në 2022, në 2023 dhe gjithashtu presim rritje edhe në 2024”, pohon ai.

For the past year, in Tirana, there was an increase in apartment prices in some areas near the center and the outskirts. In the area near the "Nobis" center, the apartments in a new building being developed are being sold at a price of 3,500 euros/m², according to the sales office, from 3,000 euros/m² which was the highest price in this area. The increase is 17%.

There was also a high tightening of prices in the peripheral area of ??Fresk. The maximum selling price from 800 euros/m² has reached 1,000 euros/m². The increase is 25%. Even in other peripheral areas, such as Kashari and Yzberishti, the maximum prices, according to sales offices, have reached up to 1,000 euros/m², from 750-850/m², which varied for years.

According to real estate agents, keeping prices cheaper in the suburbs than in the center has led many people to move to these areas, which are considered more affordable. This is likely to lead to continued price increases in the coming years as demand remains strong.

In coastal areas, the increase in prices continued during 2023. In new apartments in residential areas in Vlora and Saranda, apartment prices, according to representatives of real estate agencies, increased by 40% compared to 2022.

On the coast of Durrës and Qerret, property prices on the front line increased by 15%. Real estate agencies claimed that the increase in prices came from high demand from foreigners and increased costs from construction materials.

In tourist resorts, such as Orikum in Vlora or Saranda, which started construction last year, apartment prices ranged from 2,500 to 3,500 euros/m²./ Monitor