The best areas to live in Tirana. How quickly are sold apartments in the center of the capital of Albania. Prices fluctuate rapidly, due to increased demand, but also improving the infrastructure. The revival of the construction market and how to buy a house in Albania. After several years of stalemate in the apartments in the capital market it shows that it is significantly quickened in recent months, as increased demand and the impact of the construction fee duplication in infrastructure, coupled with the improvement of urbanization, are increasing rapidly prices. An individual interested in buying an apartment on credit or cash. In most of the buildings in preferred areas are few vacant apartments, and builders do not hesitate to tell potential buyers that sales have increased recently, with cash – and it’s no problem to find ways to justify the money through installment payments. In hard center that finds small apartments or average, which makes them inaccessible to individuals with income from wages. But the latter still have the option of periphery, which remains among the cheapest in the region.
Favorite areas: Block, TVSH (Albanian Television)
The first search zone was near the dam of the artificial lake, where the houses are close to completion. The price per square meter of apartments for housing was 1800 euro. Formerly, the apartments were traded at around 1200-1300 euro area to measure. Construction of a new road recently, has given another dimension to this area, making it very favorite. However, despite the price increase, the number of vacant apartments for sale was small. There was very little choice variants, no apartment oriented West had not remained unsold, while the building was still not completed.
After being told that buying the apartment can only be done with the help of the loan, its interest to client dropped. The chances of a person with average income to get a loan for a house worth 200 thousand Euros, are almost zero, while banks generally do not give more than 50 thousand euro loan.
Approaching closer to the former block area sales managers were told that they wanted to purchased a cash entry. Near the stadium it was on completion of construction object. From 1700 euro / m2 in construction beginnings, the price per square meter was reaching the level of 2000 Euros. Again, on this subject, the free apartments for sale were few in number.
The Zoo Park area, near the American Embassy, a former bus park, Dibra and the Red School areas, apartment prices ranging from 1100 to 1500 Euros per m2 and according to market players, prices in these areas increased by 100 to 200 Euros per m2, compared to a few years ago.
Paris Commune, Dry Lake, Kinostudio and Kombinat, the prices of apartments ranging from 700 to 1000 Euros per m2.
Most of the apartments in the building were sold. In the Dry Lake area, only two apartments was free for sale, while slightly below, the Zoo area, all apartments were sold. Depending on the appearance of the apartment, guided by the artificial lake of Tirana park or not, prices ranged from 1200 to 1800 Euros.
Paris Commune is one of the new neighborhoods most populous Tirana. In the second complex of palaces Kika, the price per square meter is 950 Euros, questionable if 60% of the amount paid. The administrator of the construction company, said that demand for apartment and sees increasing complex requiring about six months to finalize had very little free entrance residential for sale. Also, he added that it is not only increased demand for houses, but the demand for quality houses had.
Also in that area, it expected to begin construction of the third complex housing Kika, but confessed administrator still have not decided what price would come to market, but it will reflect the tax increase and higher demand. For example, only the infrastructure fee, 15 Euros / m2 go to 75 Euros / m2.
The most expensive areas.
The most elite areas of Tirana, as it near the Albanian Radio Television, are qualified in everyday life as sacred and the price of apartments in the area worth 3000 Euros per m2. Currently the area is only an object under construction.
Free alternatives in the suburbs
It is known that the value of apartments in the center of the capital hardly falls and for those who can not afford to buy a home with 2000 euro price / m2, despite the desire to “choose the neighborhood” and there is a second chance, periphery.
In the suburbs of Tirana, you can find apartments with 400-500 Euros per square meter, compared with the region, prices are cheaper. Builders say that this is due to poor infrastructure, as houses are built with no plan, no spaces (parks or shared environments), the streets are narrow and in some areas they are supplied with well water.
From block to suburban neighborhoods Yzberisht or Fresku area, the difference in price ranges from 500 to 1,500 Euros to the center areas. According to sales manager of one of the construction companies with projects in the city center, in this area, generally focused individuals with higher monthly incomes, while in the suburbs, individuals with limited income.
High demand, prices rise more than taxes
Doubling from 4 to 8% of the tax infrastructure, but also the change in the cost of sales price calculation base is expected to be reflected in the prices of apartments, according to builders. For example, a builder who sells apartments to 900 euro / sqm and construction cost of 500 euro / sqm, previously paid tax Infrastructure 20 Euros / sqm (500 Euros / m2), and will now have to pay 72 Euros / sqm (900 Euros / m2), or 3.6 times more. From the periphery to the center, prices are expected to increase by 50 to 120 Euros per square meter.
Due to blockage of building permits in 2016, this tax is expected to give effect in 2017. Although this should be only the effect of new construction, builders warn that will be reflected in the entire market, although not at the same pace.
Making such a high fee would normally allow the Municipality of Tirana to be able to invest more in the urbanization of blocks of flats. This is an important element for improving the urban environment and the increasing demand for these apartments, as a result, the prices. Builders are expressing positive, despite the added tax, as it will enable the improvement of infrastructure and give more value housing.
But, in the center resulting prices have increased in recent months with 200-300 Euros per square meter, double the tax effect of infrastructure. Builders are using as an excuse the change of the infrastructure fee application and growth, more than the fee set reflects a collusion between builders and is still too early to say that 2017 will be characterized by a boom request.
In general, the market consists of demand and supply and the price is determined by their cross cutting, thus the price increase is an indication that demand has increased. However, the high growth of demand will be only in the center, while in the suburbs, demand growth is projected to be easier.
Role in increasing the price of apartments, in addition to increased demand, and there has been improvement of infrastructure, and regulation of urban planning in the capital. Dinamo complex constructions in the area before the road construction, are marketed under the starting price in 1100 to 1,300 Euros per sqm. Today the price per sqm in the area fluctuate in 1700-1800 euro value.
If they say that sales managers will be buying a first home in hand, they become willing to “help.” Even the sales manager of one of the construction companies said that most of the apartments purchases were made with full payment.
The usual scheme and spread more widely declaration was the purchase of the apartment with the reference prices or tax price, which in some areas was up to 1,000 Euros less than the market price, while the rest of the amount at hand.
All market players, builders and real estate agents, show that the money generated by the activities being invested in real estate.
The apartment in the center, long-term investment
In the Center, not only that of Tirana, but everywhere in the world capitals, has always increasing prices for apartments compared with the periphery. Despite the higher price, compared with the suburbs, standards and quality construction they are also higher.
In general, purchases of apartments in the center of Tirana, or these so-called elite area, made primarily for the purpose of investment, after buying to rent.
special items, trading of which goes up to 3,000 Euros / sqm, can not be the real indicator of market apartments in Tirana. First, four years ago, there were no buildings in the downtown area and the increased demand for apartments in the center is reflected in the price. Secondly, it has changed the quality of construction. Also, there has been increasing and the price of land for construction. Another indicator of increased demand for apartment has been economic growth.
While the change in prices since the beginning of the facility until the end, proven by the fact that historically builders to attract liquidity at the beginning of the project come with lower prices, when the project comes to an end and demand is the highest price increases.
A good investment so for the middle classes, is buying an apartment in the lake area, where the average price is around 700 Euros and then use the lease. Adjustments to infrastructure, it is expected that the value of the area and consequently increase and rents.
Individuals who exercise free professions, such as dentists, lawyers, etc., Are investing in the purchase of second homes in order to provide their rent.
Buying cheap to resell more expensive, it is double-edged sword, especially in the suburbs. According to the president of the Builders Association, it had a kind of trend on the part of builders to build on the outskirts of Tirana, in Kashar area, Farka, or Dajt. Constructions carried out in these areas have been generally free and quality standards not required, therefore it has brought and stock of apartments in the suburbs.
Tirana is a city that over the years has seen continuous expansion. What was known suburbs in the early ’90s, the current size of the capital can be considered as the center. ongoing demographic changes are driving this transformation. Given that Tirana is not only the country’s economic center, but also university, will always attract new residents.
In the hope of employment or education, migratory movements have made the city soar in three decades. migratory movements of capital destination, accounted for over 50% of the total movements, which were from Durres, Diber, Fier, Lezha, Korca and Kukes. While migratory movements from Berat, Gjirokastra and Shkodra accounted for 40%.
Another reason for the increased demand is the growing number of young couples who are looking to buy a house and the families that have increased in number and are seeking expansion.
In districts, low demand expected
However, demand growth will be in Tirana-Durres area. In cities, demand is expected to decrease. Most of the apartments has remained stock, while for the current year is not expected to be constructed.
The construction sector in the city of Durres, remained stagnant, especially the beach area, where buildings are made without any criteria.
Growing demand for apartments has along the southern coast, which is better built and the coast is beautiful.
Many apartments and holiday villas for sale. Is oversupplied market for second homes in the country. Although still built yet, when the buyers come are exhausted. All want to sell Golem beach. Orientation towards the tourist villages of villas. Is it worth the investment on the coast.
At first they bought a house on the coast, in Durres Vlora or Saranda. Then ran market villas on the outskirts of Tirana. Many rushed to buy there, (keeping the comfort and the first apartment in Tirana) some of whom pulled in sales and seaside homes, which are not exploited enough. Now they come in fashionable villas in Lura resort, or luxury homes in the south of the country. Many offer, while not a primary buyers of houses remain limited (on average) in the category of people with incomes while foreign buyers are interested for properties in Albania from Europe, Russia, Ukraine, and other countries.
The second residential housing market has turned into a headache for builders, a pledge to “investors” in areas without infrastructure conditions for real estate agencies to sell as much.
A situation that comes from a lack of market analysis, experts say, led to a building boom still unsold, which joins the lack of regular documentation.
Since last year when the census is done, it turns out that 22% of the apartments are vacant, a significant increase considering that in Census of 2001 this ratio was 11.3% of the market.
From the latest data of the Association of the Albanian Constructors, shows that the stock of unsold housing nationwide is over nine thousand.
If refer apartments within the Ring Road Tirana, the amount of unsold apartments is almost negligible. “Inside the ring sold all facilities and prices for them are increasing. Given that demand is high and the amount of low prices have risen.
What is seen as a new branch in the background of the residential housing market is the increasing demands of the Albanians, like services, infrastructure, good condition. And for this, we do earlier investment in poor areas and are heading towards the houses of all conditions, especially on the coast.
Durres and Golem beach, everyone wants to sell
Regarding the area of Durres, the biggest stock of unsold has come from a lack of infrastructure and buildings completely uncontrolled.
Today not only sell investors in this area, but the first buyers, who have put on sale their apartments. It’s more in the beach area and the Golem. Most of the sellers are immigrants who have invested time ago about buying a second home and we already see as ineffective accommodation.
Albanians have started to have higher demand, especially if it comes to home on the coast. They tend to invest mansion with good conditions.
Although capita purchasing power has fallen, the main reason why Albanians still buy apartments and want to have a second home is the lack of investment alternatives.
Mainly Albanians who buy second homes they are refugees, but also resident in Albania. Although it decreased purchasing power and the Albanian economy, keep in mind that they have little savings, Albanians or deposit it in banks to get interest from them, or invest in real estate. There are other alternatives or genuine investment fund as it has in the world.
The real issue
In 2015, according to real estate agencies, real estate prices managed to stabilize, demand for homes on the coast went into tourist villages, although a large part of the apartments also offered good prices. But market concerns remain the prohibition of building permits, poor infrastructure and lack of mortgage documentation.
This year, market players report the same increase in demand for home purchase on the coast, especially in Durres, that lower prices attract more.
From the same agency reported a decline in prices for apartments in Durres, but the price differences are observed by division: first line – the second line the coast. While in Saranda show that the increase in the sales tax to 15% value therefore had an impact on increasing the price of real estate, however, according to their Saranda and the Riviera in general continues to be attractive, even more foreigners, mostly to buyers from Western Europe.
The greatest interest for property purchases comes mainly from the Nordic countries, not excluding interest and that showed Russian and Ukrainian nationals Saranda coast and beyond. With the opening of the tourist season is expected to have increased requirements also citizens of Kosovo, who mostly prefer Saranda, Vlora and Durres, to perform various investments in real estate and tourism.
More growth in demand for apartments is in the coastal areas of Vlora and Saranda.
There are growing demands for apartments in the coastal areas of Vlora and Saranda, where the interest has come more from foreign buyers due to favorable prices that represent these properties and geographical conditions favorable climatic offering these coastal cities.
Given that the stock of apartments is considerable, per square meter prices for this year they have not increased. This price situation and is projected to be in the coming months. Lack of mortgage documentation and poor infrastructure barriers to the sale of properties.
Apartments accepted within cities, because the surroundings did not offer much better conditions. Durres beach has application in which there has been some decline in prices. The drop compared to 2-3 years ago. the first requirement was filled with Albanian emigration from Kosovo, Macedonia, are now mostly people coming from the north country.
He notes that Vlora continues to be less desirable, because it is far away from Tirana and Corfu. Riviera has problems, as little as constructions are made in Dhermi, Himara, foreign demand have problematic conditions that offer. They do not provide services. Outside the season are “dead” people do not want to invest the assets of the estate there.
The attractiveness of the tourist villages
While last year took “off” buying an apartment at a resort, this year, infrastructure and documentation are the main reasons that these residences make very attractive. It then followed by the provision of services, buying them as an investment, maintenance and competitive prices offered by the stock.
Projects Wave mar the Lalëzit Bay and Green Coast in Palasa, Dhermi being developed by a tourism development master plan approved by the Albanian government. They are taking place in areas untouched by mass tourism with low coefficients construction not exceeding 14.8%. These projects will help in the development of tourism and will return destinations. The projects have started construction in 2015 and expected to end in June 2018.
Regarding the question of who are the most interested in purchases in tourist villages when launched projects, it was thought that had to be “targeted” persons and families with high incomes and very high, but according to him, it was very soon even families with middle-income countries are turning into buyers.
As for prices, real estate agencies demonstrate that they have reached a point of stability, prices are expected to increase by 10 to 20%. Growth will come for some reason, as increased demand, construction progress, change of fiscal packages, the development zone, and the provision of services. For all the above reasons I want to stress that now is the best time to buy.
Average prices of apartments on the coast in Albania, according to the zones:
Shëngjini: 350-500 Euros / sqm
Durres (Beach areas, Golem): 350-500 Euros / sqm
The Lalëzit Bay (tourist villages) 900-1200 euro / sqm
Qerreti (tourist villages) 800-1100 euro / sqm
Vlora: Over 800 euro / sqm
Saranda: 780 – 1100 euro m2
Cold Water: 450-700 Euros / sqm
Orikum – Radhimë: 650 – 1000 Euros / sqm
Dhërmiu: 800 – 1100 Euros / sqm
Himara: 700-900 Euros / sqm
Source: Real estate agencies in Albania