Builders and real estate agencies have different expectations regarding the price performance of apartments this year. Hajredin Fratari, the builder, said the prices will be on the rise. He said that the main reason for the growth of the residential construction sector is the requirements and urban plans of the Municipality. Frater claims that the demand for cheap and medium-cost dwellings in the suburbs will be steadily rising for this year, adding that there is an upward trend for flats that even exceed 900 euros. According to him, prices are expected to rise further for 2018 by about 100 euros per square meter. Fratar said that all facilities to be built in 2018 will pay 8% infrastructure fee based on their sales value.
Arben Dervishi, of the Builders Association, predicts that prices will be dependent on construction, which implies the location and quality of the building. He said that in the center and within the Great Ring area, prices will be on the rise, while on the periphery is expected to have a decrease.
Unlike builders, this year, real estate agencies expect stability. In 2018 property tax will also be applied, which changes in residential and business premises. According to market players, this new tax will not be transferred to the price but to be retained by the owners.
Last year, apartment prices rose in the first months of the year by about 10% in the ring area, reflecting the increased demand, as the cash buy-in rose sharply. In the second half, the market stabilized after the increase in supply as a result of the revival of construction, marking a slight decrease in the center area. But on the outskirts apartments grew by 50-100 euros per square meter, reaching 450-600 euros per square meter as a result of rising cost of construction.
In the surrounding ring road, prices range from 800-900 euros, up to about 3000 euros, close to the VAT, which is the most expensive area in the capital.