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Ekonomia

Tightening of prices, builders clarify: Cause, the increase in the liability for the impact tax on infrastructure and...

Tightening of prices, builders clarify: Cause, the increase in the liability for

Among the main factors of the increase in property prices for this year, according to the Association of Builders of Albania, is the increase in costs from the increase in the impact tax on infrastructure, labor and construction materials.

"Taxes in the municipality have multiplied, the percentage of owners for the construction plot has increased, the time it takes to issue a permit has increased significantly, which means more costs, the quality of construction as well, while the euro has depreciated", the mayor claims. of the Association of Builders of Albania, Erjon Harizi.

One of the builders of new buildings on Tirana's New Boulevard claimed that after the increase in reference prices, his obligations for the infrastructure impact tax per square meter have increased by 100%.

"If last year, the cost per meter for the infrastructure impact tax was 50 euros, after the increase in reference prices, I paid 100 euros per square meter of construction."

The infrastructure impact tax from new constructions is subject to all entities that seek to be provided with a development permit and construction permit for residential, administrative, production, service and other facilities. The tax is paid by the builders before the construction permit is issued.

For Tirana it is at the level of 8% and is calculated per square meter above the reference prices, which from August of last year increased from 5 to 76% for the 32 cadastral areas of Tirana. There was also an increase for 5 municipalities of the capital, such as Kashari, Petrela, Preza, Farka and Dajti.

In 2022, from the infrastructure impact tax, the largest Municipality in the country collected 7.4 billion ALL and for 2023, 7 billion ALL. The collection forecasts for this tax, referring to data from the budget, in 2024 are expected to be in the amount of 6.3 billion ALL and in the period 2025-2026, 6.5 billion ALL.

Expenditures for salaries in order to curb the immigration of the labor force have also hit the developers of the construction facilities. The increase in wages is listed as another reason that has led to price increases.

"Years, the daily payment for construction masters was 3,000 lek, currently this category is being paid 6,000 to 7,000 lek per day, as the local labor force shortage is great.

It is difficult for us to find employees, and the yield of foreigners is very low. While the increase in the prices of construction materials compared to years is easy at 5%, but after the Covid-19 pandemic, the cost of materials goes up to 40%", said one of the builders of Tirana.

Builders warn that new residential apartments are expected to come out with high sales rates for the next two years, as the cost for the daily salary of the worker will increase by 20% (reaching 8,500 lek daily payment per employee) due to the departure of workers abroad.

Despite the fact that price growth is not predicted to stop, real estate market expectations remain optimistic.

In the survey of the Bank of Albania, it was emphasized that agents are optimistic about the progress of the real estate market in the territory where they operate, for the short-term and long-term future (up to two years).

Also, they were optimistic about the future of this market throughout the country. /Monitor/