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The rise in apartment prices does not stop, builders predict rising prices

2022-05-13 07:56:01Fokus SHKRUAR NGA REDAKSIA VOX
The rise in apartment prices does not stop, builders predict rising prices
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The rise in apartment prices does not seem to intend to stop. The expectations of entrepreneurs in the construction sector are that the rise in prices will continue in the coming months.

In the Business Survey conducted regularly with enterprises by the Bank of Albania, construction entities were asked about their price expectations:

How do you expect the prices you will set to change over the next 3 months?

-1. They will grow

-2. They will not change

- 3. They will fall

The balance of responses for April was 45, ie 45% more construction entities surveyed think that prices will increase, compared to those who think the opposite. Although slightly declining compared to the previous month (49.6), expectations for price increases continue to remain close to historical highs (see chart: How do you expect the prices you will set to change over the next 3 months?).

Contacted by "Monitor", the builders give as the main reason for the expected increase in prices, the significant increase of raw materials.

Construction costs have become more expensive due to rising prices for construction materials. The biggest increase has been for iron by 80 to 90% over the years. Costs for iron have increased by 30 to 40 euros per square meter of construction. There is also an increase in prices for other building materials, such as concrete, cement, aluminum doors and windows. There has also been high price increases for materials used for electrical installations. For some materials with copper composition the price increase goes even 2 to 3 times higher.

Arben Dervishi from the builders' association says that the construction cost for the apartments in the suburbs has reached 600 euros / m2 from the previous 400 euros, due to the increase in the price of raw materials.

"The cost of construction for facilities in peripheral areas from 400 euros has reached 600 euros / m2. To this cost in the sale prices are added the taxes of the municipality that occupy 11% of the sale value of the apartment, and of the owner of the land from 35 to 50% ", he affirms.

 


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