“BUSINESS INITIATIVES DIRECTIONS”
(
The Association that values the work of businesses all over the world )
Located in Madrid, Spain,
In the month of march 2007, accorded to:
REAL ESTATE “INF 93” sh.p.k
The Price
:
“GOLD CATEGORY”
“INTERNATIONAL STAR AWARD FOR QUALITY”
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Aprill 1997
The Medias during that time were writing:
“The collapse of pyramids scheme, the constant depreciation of the Albanian currency (Lek) disorient the apartment market.”
“Houses” “Price madness”
“The constant increase of the Dollar Value transfigures the apartments market”.
After 1996, with the collapse of the pyramid scheme companies, the apartment market incurred considerable changes. The price level changed the type of currency for exchange, the measure of demand-supply. The depreciation of (Lek) brought the devaluation of the apartments market. There was a big decrease of the apartments that were offered for sale and of the buying-selling transactions. The main reason was the political and economical collapse that the country was suffering from the collapse of the pyramid scheme companies. Before people were selling their apartments so they could put their money in these pyramid scheme companies. After 1996 the supply of apartments decreased, but on the other hand the demand for apartments was still present because the accommodation situation was hopeless in Tirana. The demand started to increase because from the periphery a lot of families because for them Tirana was a safe city. So the price of an one bedroom apartment in the Tirana Ring (Unaza) Area by the end of 1996 was 1.5 million (Lek) and in July of 1997, six months later, the same apartment was selling 2.7 million Lek, which means 80% more. This happened because the Albanian currency (Lek) had a high devaluation. In July of 1997 one dollar was exchanging with 182 Lek from 100 Lek that was exchanging in December of 1996.
THE MARKET FOR NEW APARTMENTS
In the beginning of 1994 in the city of Tirana the construction of new residence buildings started. The median sales price was 24.000-26.000 lek/m2. One 1+1 apartment with an area of 65 m2 was being bought for 1.600.000 leke. One 2+1 with an area 85 m2, was being bought for 2.100.000 leke. In October of 1994 in the area of (ish-Blloku) started the building of the first residence palace with 10 floors. This palace was followed with the construction of other palaces with 10, 12, 15 till 17 floors. The selling starting price was 290$/m2. This meant that at (ish-Blloku) started was in now called the most preferable area for habitation for different activities. Now this area is called “Manhattan” of Tirana, for the simple fact that is transformed in a very important area for residential, business and entertainment. Another fact that is called this way is the high prices of real estate in this area.
What are the realistic prices ?
It need to be explained that in every area of Tirana (for the effect of the study of market, Tirana is divided in 32 areas) there are minimal and maximal prices. This for the fact that in the valuation of every apartment that is being sold there are a lot of factors that influence the price of the apartment, which should be paid a lot of attention when it comes to the value of market. So in one area it should be paid attention to: The year of construction (amortization of the building and the apartment), the construction company, with or without mortgage, the way of payment, the outside frontage, the functional way of the apartment (how organized and comfort is), surface, floor, orientation, view, bathrooms with or without direct illumination, excessive balcony or without balcony, inside workings (where any supplement quality work done besides the work of the company), the density of new constructions in that area, the closeness with other objects or the road, the entrance to the building, parking space, the perspective or the area etc… It needs to be considered the comparative data of the real sale that were made in that area with equal comparative bases. By considering all these factors, we can say that in the area of (ish-Blloku) and (TVSH), for the year 2006 the minimal sales price is 1000Euro/m2 and the maximal is 1700 Euro/m2, with an average of 1350 Euro/m2. So, those apartments that fulfill the above conditions are being sold in the market with the maximal price of 1700 Euro/m2 and those apartments that don’t fulfill those conditions are being sold in the market with the lowest price of 1000Euro/m2. After these two areas, the highest prices are in the center area with a minimal price or 800 Euro/m2 and maximal price of 1200 Euro/m2. In the Ring (Unaza) area the minimal and maximal price is 700 Euro/m2 and 900 Euro/m2 respectively. In the suburb of Tirana, where the prices are lower, the minimal and maximal price is 500 Euro/m2 and 640 Euro/m2 respectively. We emphasize that the areas across the road to Lapraka, the road to Textile Combine and the area of Kinostudio have the higher development and increase in prices.
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