The price of high-rise real estate reaches EUR 5,000 in Tirana – Release
Property prices in the Blloku district of Tirana have reached 5,000 euros per square meter, a significant increase from the price of 3,000 euros quoted for many in 2021.
Projects designed by Italian studio Stefano Boeri Architetti, including Rainbow Centre, West Residences, Book Building and Green Terrace, are all high-end developments in sought-after locations. All high-rise buildings with underground parking, offices and luxury apartments are on sale at 5,000 euros per square meter, according to the sales office of developer Invest Society.
The sales office told Monitor that in the Rainbow Center, a seven-story building with two storey floors, all units have been sold.
The Builders Association says the price increase is due to rising material costs, higher wages and taxes.
Arben Dervishi, general secretary of the association, told Monitor that the cost of aluminum, copper, iron and cement has increased by 200%.
“Already in the capital, there are no more constructions with a cost of 300 to 400 euros per square meter. The cost of apartments has reached 800 euros per square meter due to the increase in quality. For the towers, due to the use of unique materials and facades, construction costs reach up to 2,000 euros per square meter. Thus, the increase in apartment prices reflects the trend in the development of prices for building materials”.
But this will have a ripple effect on the cost of non-luxury developments. The selling price of these properties has gone from 800 euros per square meter in 2021 to more than 1000 euros today.
In May, INSTAT reported that the average cost of real estate in Tirana per square meter was 1,143 euros.
But the number of permits is also increasing as in the first six months of 2022, some 736 building permits were granted nationwide with a construction cost of over half a billion euros. Some 1.7 million square meters of development has been approved with the majority in the capital.
Tirana had 207 permits, followed by Durres with 55. Permits in Tirana represent 350 million euros of the total amount.
A realtor working for a citywide brokerage said demand was high and continuing to rise. When asked who is buying properties, he explained that they are seeing a lot of interest from investors.
“They buy real estate before it’s even built, several apartments at a time. Then sell once built to make a profit. Others buy apartments to rent to foreigners,” he explained.
It is believed, however, that much of the building boom in Tirana is due to dirty money. The Global Initiative against Transnational Crime has estimated that between 300 and 700 million euros of dirty money enters Albania each year, much of which goes to the construction sector.
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