LATEST NEWS:

Apartment prices on the Albanian coast are 'flying', villas are being sold for over 1.5 million euros

Apartment prices on the Albanian coast are 'flying', villas are being sold for over 1.5 million euros

The increase in demand from foreigners has made the prices of apartments and villas on the coast of Albania more expensive this year by up to 40 percent. Property prices in the new resorts in Vlora and Saranda have seen the biggest increase. The apartments in these projects are being sold for 3,500 euros per square meter. The Albanian coast continues to be untouchable for the majority of Albanians, while there is an influx of Nordics, Germans, English and Italians to buy properties, to rent them out.

The price tightening of villas and apartments on the coast is continuing in 2023. In new apartments in residential areas in Vlora and Saranda, according to real estate agencies, apartment prices have increased 40 percent more compared to 2022.

On the coast of Durrës and Qerret, property prices on the front line have increased by 15 percent. Real estate agencies claimed that the main reasons for the increase in prices are the high demand from foreigners and the increase in the cost of construction materials.


In the tourist resorts, which started construction this year, such as Orikum in Vlora or Saranda, the prices of apartments vary from 2,500 to 3,500 euros per square meter.

There is also a high increase in the prices of villas. Elite villas on the coast are being sold at the price of 1.6 million euros, 33 percent more than last year.

Durrësi, Golemi and Qerreti are tightened by 15 percent - economic price only for constructions before 15 years

Even this year, the prices of apartments in the coastal areas of Durrës have followed the trend of growth. The highest tightening is for properties in the first line of construction, which have reached the maximum level of 1,500 euros/m2 from 1,300 euros that were sold last year, so the increase is 15 percent.

In 2021, the maximum price for front-line constructions in the area of ​​the Rock of Kavaja reached up to 750 euros.

Arian Gjuzi, broker of the agency Century 21 EON in Durrës, underlines that the prices on the first coastal line of areas such as Durrës, Plazh, Golem, Shkêmbi i Kavajës and Qerret have increased by 100 to 200 euros.

Gjuzi adds that the growth has been influenced by the high demand for these properties and the low supply. According to him, properties are being bought mainly by Czechs, Poles or Albanians of the diaspora, for the purpose of investment and rental.

"Last year, the maximum price for new constructions overlooking the sea on the coastline of Durrës and Qerret was up to 1,300 euros/m2, this year it is 1,500 euros/m2. Most buyers, mostly foreigners and from the diaspora, always look for properties in the front line. New construction on the front line is few and far between. For this reason, prices have increased", adds Gjuzi.

He emphasizes that in Durres there are still properties with economic prices, which are preferred by the locals.

"Apartments built 10 or 15 years ago in Golem are being sold at economic prices of 600 euros/m2 - 650 euros/m2, which are preferred by the locals. Whereas, the new constructions in Golem this year, which lie on the last line, are priced at 800 euros/m2 - 850 euros/m2", he emphasizes.

But who is buying on the coast of Durrës? Gjuzi claims that compared to years, the demand for purchases from the Czechs and Poles who dominated the market is down over 50 percent.

According to him, this happened due to the uncertainty of spending due to the Russia-Ukraine war. The demand for apartments is then led by citizens from the diaspora, North Macedonia and Kosovo. While from locals, the demand is concentrated only on the residents of the capital, buyers from the districts are negligible. Foreigners are buying apartments for investment purposes, for rental through international platforms. This is also happening with the investments of immigrants from Switzerland, the diaspora or the region. While the demand from locals is very low, due to the high price. The level of 1,500 euros per square meter in the first line of construction is an unaffordable price for Albanians", asserts Gjuzi.

Real estate agencies claim that prices on the coast of Durrës have reached their peak in the last two years and no further increase is foreseen.

Market experts added that the demand from foreigners has increased the price in Durrës. Even many apartments according to the findings of real estate agencies in 2019-2021 were bought by Polish and Czech agencies at a price of 500 euros/m2 and resold to foreign citizens at a price of 750 euros/m2.

These agencies consider this a factor that has driven up the prices of other owners reselling the apartments.

Who is buying in Durrës?

Foreigners are buying apartments for investment purposes, for rental through international platforms.

This is also happening with the investments of immigrants from Switzerland, the diaspora or the region. While the demand from locals is very low, due to the high price.

The level of 1,500 euros/m2 in the first line of construction is an unaffordable price for Albanians.

The prices of apartments in "Durrës Yacht & Marina" are increasing

Although the properties in the new "Durrës Yacht & Marina" project, which is expected to be developed, are being sold in the air, this has not prevented investors from increasing the prices of the apartments.

According to the sales office contacted by Monitor, apartment prices for the third 9-storey building start from 1,650 euros/m2 to 2,800 euros/m2.

Until the business plan of the project, published earlier, the sales prices ranged between 1,500 euros/m2 – 2,000 euros/m² or 10 percent to 40 percent increase.

The sales agents of "Durrës Yacht & Marina" said that they have already completed the sales bookings for the first two apartment buildings, while the project for the new building is expected to be presented at the end of March.

The sales of the apartments by the company "Eagle Hills Real Estate Development" started on December 8, through the "Interest Reservation Agreement" contracts that were given to the buyers.

The agreement provided for making payments in installments for the purchase of the apartment.

Specifically, 40 percent of the value of the apartment divided into 3 installments will be paid before obtaining the building permit, as 20 percent of the purchase price to be paid within 5 days of signing the Preliminary Sales Agreement, 10 percent of the price of the purchase to be paid no later than three months from the date of the construction permit and 10 percent of the purchase price to be paid no later than 6 months from the date of the construction permit.

The rest of the value of the apartment will be paid, according to the scheme 15 percent of the value before or after the completion of the structure, 20 percent of the price will be paid before or after the glazing and 5 percent of the purchase price will be paid within 5 days from the date of signing the sales contract for the transfer of the ownership title of the property.

"Durrës Yachts & Marina" is a joint venture between the Albanian government, 33 percent through the Albanian Seaports Development Company and two companies from the United Emirates, Eagle Hills Real Estate Development and Nshmi Development with 67 percent together and is implementing the project with strategic status "Marina & Yachts of Durrës".

The "Durrës Yacht & Marina" project has received strategic status, after which the Albanian state became a shareholder, as 80 hectares of state land were made available to the project. The company has benefited from many benefits as an investor, such as exemption from infrastructure tax in construction, 4 percent of the sale value and housing tax of 3 percent.

In total, the construction of almost 13 thousand apartments is foreseen, 4 thousand in the first phase and about 8,600 in the second phase, while there will be only a few hotels with more than 850 rooms.

Only 280 berths are provided for the yacht. 93 percent of the projected construction area will be residential and 3.5 percent will be hotels and commercial areas, respectively.

The estimated investment in the first phase is 595 million euros. However, the investing companies are required to keep in their accounts an amount corresponding to 30 percent of the financing needed for the development of the first phase square, i.e. about 180 million euros, while they can collect income from sales, or include other co-financiers.

In Lungomare, high demand makes apartments more expensive up to 60 percent

This year, there is a high increase in apartment prices for new constructions in Vlora.

In the area of ​​Lungomare, on the first line of construction, the maximum prices of apartments have reached 2,700 euros/m2 - 2,800 euros/m2 according to the data of the "Albania Property Group" agency.

It is about constructions that are in the first stage of development. This year, on the first line of construction in Lungomare, but for apartments not facing the sea, prices range from 1,200 euros/m2 to 1,300 euros/m2.

While last year, apartments in the first line of this area ranged from 1,700 euros/m2 to 1,800 euros/m2, last year's prices were given by another agency. The increase was 55 percent to 58 percent.

Real estate agencies claim that the main reason for the high price growth in Lungomare is strong demand and very low supply.

The high trend of prices for properties in the first line of construction in Lungomare has been predicted for years by sales agents, due to supply and demand.

Even this year, the demand for properties in this area is led by foreigners for vacation homes, while locals have increased the demand for buying for the purpose of renting.

The lack of construction for years in the area of ​​Radhima in Vlora, this year has brought an influx of demand for new construction. In the new residential areas of Radhima, builders are selling apartments at prices starting from 1,400 euros/m2 - 1,500 euros/m2.

Vlora flies!

In the area of ​​Lungomare, on the first line of construction, the maximum prices of apartments have reached 2,700 euros/m2 - 2,800 euros/m2. It is about constructions that are in the first stage of development. This year, on the first line of construction in Lungomare, but for apartments not facing the sea, prices range from 1,200 euros/m2 – 1,300 euros/m2.

Working foreigners buy houses in Saranda, prices increase 40 percent

In Saranda, property prices continue to rise. Last year, the minimum price for new apartments according to agencies ranged from 1,200 euros/m2 - 1,300 euros/m2, while the maximum price reached up to 1,800 euros/m2.

In 2023, residential apartments in the new residential areas are being sold at prices above 1,500 euros/m2 - 2,500 euros/m2. While the prices of properties by the sea, specific for the veranda with a large area or residential suites, continue to be sold at 3,000 euros/m2 - 3,500 euros/m2.

Eron Çumani, the administrator of the "Investment Property Sarandë" agency, emphasizes that compared to years, the prices of apartments in Sarandë have increased by 40 percent. The reason for the increase in prices is the increased demand from foreigners, but also the increase in the costs of builders from raw materials.

"In Saranda, the prices of apartments in new constructions vary over 1,500 euros/m2 from 1,200 euros/m2 - 1,300 euros/m2 that were sold years ago", emphasizes Çumani.

The maximum prices are from 1,500 euros/m2 - 2500 euros/m2, while for some properties with a favorable position near the sea, with a veranda, i.e. suites, the prices vary from 3,000 euros/m2 - 3,500 euros/m2.

On average, the price increase this year is 35 percent to 40 percent. For a contemporary property with an area of ​​65m2, the selling price reaches up to 100 thousand euros from 70 thousand to 80 thousand euros that was before.

The tightening started immediately after the Russia-Ukraine war, due to the increase in construction raw materials. The new buildings are luxurious and include gym facilities, SPA or swimming pools in the residential residence. The rise in prices was also influenced by the increase in demand.

After the start of the war in Ukraine, there was a boom in demand for properties from Ukrainians that affected the price.

They were looking for 1+1 or 2+1 apartments when they were families with many members. In addition to the conflict in their country, the reason for the increase in demand was also the offer of visa-free stay or the facilities in carrying out purchase transactions that were given to these citizens".

Čumani underlines that the demand for properties in Saranda is dominated by foreigners, such as Germans, Swedes, Dutch, Danes, English, Italians.

"The purposes of purchasing property are comprehensive, both from renting them out, as monthly and daily rental prices have increased by 20 to 40%, but also as a second home for vacations," he underlines.

Potential buyers, according to him, are those aged over 40 to 70 years who opt for luxury properties, while the 35 to 40 age group of buyers is dominated by digital nomads, mostly from IT professions.

"Foreigners who invest amounts over 100,000 euros for property are from Western countries and they intend to live there. These citizens also apply for a one-year residence permit. Demand has also increased from digital nomads, who have the flexibility of working online," he adds.

According to the agency's calculations, the return on investment for property in Saranda, through leasing, is 10 to 15 years.

Çumani emphasizes that with the completion of strategic projects within 5 years, the prices of apartments in Saranda will reach the same as in Montecarlo, always if the buying trend will be oriented by foreigners.

Saranda

The demand for property in Saranda is dominated by foreigners, such as Germans, Swedes, Dutch, Danes, English, Italians.

The purposes of purchasing property are comprehensive, both from renting them out, as monthly and daily rental prices have increased by 20 percent to 40 percent, but also as a second vacation home.

Who leads for rental return on investment?

In the index of several coastal cities in the region, Europe and the world, the city of Dubai ranks first for the lowest return on investment time through rental to purchase properties in the downtown area.

The gross rental yield, which is the total annual gross rent divided by the house price for this city, is 11 percent, so the higher the value, the better.

After Dubai, referring to data from Numbeo, the most profitable for short-term rental return is the city of Miami in the USA with 9.4 percent for a property that is purchased in the center.

Then there are cities like Saranda and Budva with a gross yield of 6 percent, Dhërmi with 5.7 percent, Tivari with 5.1 percent, Vlora with 5 percent, Durres with 4.7 percent, Sanremo with 4.6 percent, Barcelona with 4.3 percent. , Thessaloniki with 4.2 percent, Monte Carlo with 3 percent, Nice with 3 percent, Rimini with 3.5 percent and Dubrovnik with 2.7 percent.

In Dubai, the rental yield index remains favorable due to the high sales price and rent.

The real estate agency "Falcon", which offered a wide portfolio of properties in Dubai, said that the prices of luxury apartments start from 3,000 euros/m2 - 3,500 euros/m2, while rents start from a minimum of 6,000 euros.

Director Sokol Çili claimed that the optimal investment return time from rent is 5 to 10 years and this is one of the reasons why many individuals, mainly entrepreneurs, are investing in Dubai.

Whereas, in Montecarlo, the gross rental yield index is 3 percent low, due to high sales prices. According to an estimate, the prices for new apartments in the center started from 26,000 euros/m2, while the monthly rent from 4,700 euros. /Telegraph/

Trending News

More
99.72 percent counted, these are the votes for political parties

99.72 percent counted, these are the votes for political parties

NEWS
Professor from Belgrade: If an Association is created for Serbs in Kosovo, it should also be created for Albanians in Serbia

Professor from Belgrade: If an Association is created for Serbs in Kosovo, it should also be created for Albanians in Serbia

NEWS
While the votes are being counted, Abdixhiku reacts: Yes, LDK will reach around 20 percent

While the votes are being counted, Abdixhiku reacts: Yes, LDK will reach around 20 percent

policy
Fatal accident in Carraleva, a 42-year-old man from Suhareka loses his life

Fatal accident in Carraleva, a 42-year-old man from Suhareka loses his life

The Black Chronicle
Three people arrested in Peja, one seriously injured a police officer while trying to flee after being arrested

Three people arrested in Peja, one seriously injured a police officer while trying to flee after being arrested

Black Chronicle
A 62-year-old man is arrested for murder in Skenderaj

A 62-year-old man is arrested for murder in Skenderaj

The Black Chronicle
Go to category