The Association of Builders warns of an increase in the price of apartments/ From the increase in the cost of taxes after the increase in reference prices

2023-09-14 07:33:00, Ekonomi CNA

The Association of Builders warns of an increase in the price of apartments/

The decision published in July for the increase in the reference prices of apartments, in addition to the increase in payments for the building tax, is expected to affect the increase in the sale prices of apartments.

According to decision no. 457 published in the Official Gazette on July 27, 2023, the average reference prices per square meter of construction area for the assessment of the taxable value for housing for the 32 cadastral areas increased from 5 to 76% compared to the 2018 decision .

The Association of Builders for several days has raised the concern that the increase in average reference prices will affect both the increase in income tax that is paid in cases of property sales transactions, but also in the payments of the infrastructure impact tax that builders pay. and to their obligations for the 3% social housing tax.

Members of the Association of Builders claimed for "Monitor" that the increase in the tax burden of the construction sector will not only inhibit applications for building permits, but will also increase the prices of apartments.

"The infrastructure impact tax that builders pay is calculated at 8% per square meter based on reference prices. If in an area of ??Tirana where, for example, the fiscal price was 1,200 euros per square meter, the builder paid 60 euros per square meter for the infrastructure impact tax. With the increase in fiscal prices, if in this area the price has reached, for example, 2,000 euros per square meter, the builder will pay 160 euros per square meter in tax for the impact on the infrastructure.

Due to the increase in reference prices, the 3% tax of the social housing contribution will be paid more in value. In this situation any builder seeking to apply for a building permit before applying calculates the construction costs, and the increase in the tax burden adds to the costs. This will not only inhibit the applications for construction permits, but also expected to increase the sale prices of the apartments", affirms Luigji Aleksi, a member of the Association of Builders.

For these reasons, he asserted in the letter sent to Prime Minister Edi Rama, the Association of Builders proposed that the entry into force of the decision with the increased fiscal prices be gradual or that the application against developers be related only to projects that start and end after the entry into force of the decision.

The increase in apartment prices compared to years has started in areas of the capital. In the area near the "Nobis" center, apartments in new constructions are being sold for 3,500 euros per square meter, from 3,000 euros per square meter, which was the previous price in this area.

There has been an increase in the prices of apartments compared to years in the Paris Commune area. The prices of new constructions range from 2,200 to 2,300 euros per square meter from the 1,900 euros per square meter they were before.

While in the peripheral areas, such as that of Kashari, the maximum prices have reached up to 950 euros per square meter according to the builders from 750 to 850 that varied years./ Monitor Magazine