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Figures / Is the construction pyramid in Tirana collapsing?

2024-01-11 20:51:13Biznes SHKRUAR NGA REDAKSIA VOX

Figures / Is the construction pyramid in Tirana collapsing?

Is the construction industry in Tirana facing a bubble that can burst at any moment? This question has been asked many times, whenever the millions of square meters of construction permits have come out, the unstoppable increase in prices and rents, or even the denunciations of international organizations for money laundering through new towers.

In fact, a dilemma has always arisen. How to explain this unstoppable increase in prices up to 3-4 thousand euros per square meter, when many apartments are empty. How is this breach of law between demand and supply justified? Economic journalist Ola Xama investigated exactly in this direction, in her "Kronos" show. Since there is no other official number of unoccupied apartments in the capital, the show has resorted to revealing their number according to OSHEE documents. There it turns out that in 2023 there are 51,129 customers who have consumed zero electricity. These are only the numbers of apartments that have a contract with OSHEE, not counting those that have been completed but have not yet signed a contract and those that are in the construction process.

The number of unoccupied apartments has increased 3.4 times during the last 5 years, from 14,991 in 2018, to 51,129 in 2023. The growth rate of empty apartments in Tirana is several times higher than the capacities with 0 energy consumption in the whole the country, which have grown at a normal rate, 0.87%.

Of the 292 thousand houses that have a contract with OSHEE in Tirana, approximately 51 thousand are not inhabited.

Figures / Is the construction pyramid in Tirana collapsing?

But despite the high supply and the fact that a fifth of the houses are uninhabited, apartment prices are rising and business is increasingly looking for investment in this industry, which cannot be explained by any formal economic factor.

The only way to justify investing in construction and keeping apartments empty is the dirty money of organized crime and corruption!

This scan was done by Kronos Ola Xama on the situation. And after taking this x-ray, he raised a concern: If these increases continue, are we heading towards a bubble in housing prices due to the increase in empty capacities with an unusual margin!


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