Is it worth investing to rent?

2023-03-04 07:50:02Biznes SHKRUAR NGA REDAKSIA VOX

In the urban areas of the capital, 1+1 apartments are being rented for over 350 euros per month. The increase in rents has increased the demand for the purchase of rental apartments. Dritan Leka, from the "Century 21 CPM Smart" real estate agency, underlines that there is an increase in the tendency to purchase properties with an area of ??up to 70 m², with the intention of renting them out.

"If previously 2+1 apartments with an area of ??up to 100 m² were preferred for renting, now the highest demand for renting properties is for 1+1 apartments with an area of ??up to 70 m². This has led to an increase in the demand for the purchase of these properties.

There are mainly many professionals, with stable incomes, as well as businesses that have invested in purchasing properties with the aim of renting them out. This is a growing trend for this year."

Mr. Leka says that the reason for the purpose of investing in them is the increase in the price of rent, despite the fact that the payback time of the investment through rent remains high for Albania, up to 25 years.

In the urban areas of the capital, for 1+1 apartments there is no more rent below the value of 350 euros per month. There is even a significant increase in rents in peripheral areas such as Astiri. This has led many consumers to invest in the purchase of these properties for the purpose of renting them out, i.e. 1+1 apartments.

If for the purchase of a 2+1 apartment, calculated at an average price of 800 to 1,000 euros/m², 80,000 to 100,000 euros will be spent, for 1+1 properties less is spent. In the suburbs, sales prices are lower, while rents are over 250 euros per month.

Despite the fact that the return on investment through rent remains between 20 and 25 years, due to high prices, Albanians prefer to make this investment in Albania rather than abroad. This is due to the impossibility of getting credit for property purchase", asserts Dritan Leka.

Specifically, according to the data of the "Century 21 CPM Smart" agency, the average price of apartments for rent in areas such as: ex-Blloku, New Tirana, "Rruga e Elbasani", the area near the "Air Albania" stadium are considered the most expensive areas of the capital, where the minimum rent price of a 1+1 apartment in new constructions ranges from 700 to 1,100 euros, while 2+1 and 3+1 apartments, the prices are from 1,200 to 2,000 euros. Specifically, we are talking about properties that are accessible at a distance to the center without a car, as well as offering parking, elevator, contemporary furniture and good location of the building.

The prices of economically furnished or empty apartments for new constructions in these areas vary from 700 to 800 euros. While office prices are 700 to 1,000 euros. While the average rental price for the above areas is for 1+1 apartments, 400 to 500 euros per month and for 2+1 apartments, prices vary from 550 to 1,200 euros per month (the highest increase comes from the Artistic High School area).

According to the agency's data, for areas such as Dinamo Stadium, the area near the "Petro Nini Luarasi" school, the Paris Municipality and the Artificial Lake, the average rental price for 1+1 apartments ranges from 370 to 500 euros and for 2+1 houses , from 450 to 800 euros.

While in the peripheral areas such as "Astiri" and "Fresku", the rent price in 1+1 apartments ranges from 300 to 400 euros and for 2+1 properties the price is 350 to 500 euros. Due to the transfer of UET to Kinostudio and the Canadian College of Informatics, which has been located for 2 years, there is an increase in the price of rents, both in the area of ??Kinostudio, Fresco and Bardhyl Street.

Real estate brokers of the "Century 21 CPM Smart" real estate agency said that in 2022, prices in these areas increased by 30% compared to the previous year./ Monitor

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