Apartment prices in Tirana, the third highest in Europe

2023-10-04 19:31:00, Denoncim CNA

Apartment prices in Tirana, the third highest in Europe

Illustrative photo

Former Prime Minister Sali Berisha has reacted with harsh tones regarding the prices of apartments in the capital.

Through a status on social networks, Berisha says that apartment prices in Tirana are the third highest in Europe.

According to him, the reason is the high taxes on the construction and the fines against the business that he claims were imposed by the mayor of Tirana, Erion Veliaj.

Full reaction:

Apartment prices in Tirana are the third highest in Europe.

The reason: Higher construction taxes and higher fines from Erion Veliaj on builders, which the latter reflect with a stratospheric increase in the price per square meter. So everything is paid by the citizen and only the citizen, who cannot even buy an apartment in Tirana with the salary of 60 years. That's why he ran away from Albania.

Regarding this problem, I invite you to read the article by journalist Klodian Tomorri.

The great mockery of the citizens

By Klodian Tomorri

Prime Minister Edi Rama appeared harsh with the builders in front of the cameras. Accusing them of evasion and under-declaration of sale prices, the prime minister said he would never back down from the increased references. Seeing this show, many may have thought that the government is tightening the belt for the construction oligarchs. But this is a theater and a big mockery.

The avalanche of increased taxes will not pay the builder. They will be paid to the last penny by Albanian citizens.

It is the citizens who will pay 8 percent on the increased reference, every time they buy a house. It is the citizens who will pay 15 percent of the capital gain on the increased reference, every time they sell a residence. In the same way, it is the citizens who will pay the increased property tax as a result of the doubling of the tax rate and the increase of the reference base on which it is calculated.

In short, those additional 400 million euros per year that will be paid as property taxes and compulsory earthquake insurance will all be paid by the citizens.

When Mr. Rama shouts to the builders in front of the cameras that the references will not change, he knows very well that he is putting the burden on the families. When you shout about social housing as well.

The only risk that builders have from the tax increase is that the price increase from the tax will move the market equilibrium one point higher. Where the demand is less and the price is higher.

So this is the only risk of the builders. That they will not sell as much as they sell now, but less. Or else they won't earn that much. While those who lose money from their pockets are the citizens. Not a little, but 400 million euros per year according to the government's own calculations.

And for this to become acceptable to the public, this theater of today was also needed. The one where the prime minister 'gathered' the builders with shouts. And in the theater everyone is in a role. Builders pretend they are paying those increased taxes. While the prime minister acts as if he is taking the souls of the rich for the benefit of the citizens.

But this is so trivial. Just as the other fact is banal. A prime minister screaming for evasion in his 10th year in power.