Thousands of apartments are stock, thousands more, under construction
Author: Gersi Kokonozi
In Tirana, land is already expensive and those who buy to build are looking to the heavens. High buildings up to 40 floors are being built and the work did not stop even during the days of the quarantine against the coronavirus. The biggest investments are being made in skyscrapers.
But does the capital need so many new spaces?
The mayor, Erion Veliaj, said in an interview that Tirana needs 7 new apartments per year, because 25-30 new residents come to Tirana every year. Most of the high-rise buildings are close to the center and are mainly for commercial purposes, for offices, for business. The new residents who come mainly look for apartments with low rent and in the peripheral areas of Tirana. High-rise buildings near the center do not offer this possibility.
In December 2019, 2500 flats were vacant and the government thought they would be used to house families damaged by the November 26 earthquake.
During the first quarter of 2019 in Tirana, permission was granted for the construction of residential buildings with an area of more than 479 thousand m2. The value of this area is calculated at around 141 million euros. A large area for the construction of these buildings is located near the center of Tirana.
Projects Book Building, next to the clock tower, with an area of 40 thousand square meters; project Tirana's Rock, next to the Tirana Hotel, an 85-meter high tower that will have 25 floors; Down Town Albania, at the former children's toy park, the 7 dwarfs, a multifunctional tower with 40 floors; project Eyes of Tirana, which forms a triangle with the Bank of Albania and the National Historical Museum, with an area of 63.500 m2, 26 floors high.
The concern that has been raised by many market operators is that these constructions are being done without being based on concrete studies, empirical surveys in the field and, most importantly, without being based on the needs and demands of citizens looking for a residential apartment in Tirana .
From what we understand from these new constructions, we have a city that is being pushed even more towards the center, where very well due to the increase in the population in Tirana we could have a city that expands more in the peripheral areas and creates facilities in the circulation of people and automotive vehicles.
Tirana has long lost the challenge with aesthetics or, better to say, it has destroyed the characteristic aesthetics of the city to create a new aesthetic. This aesthetic that is being created, apparently, is not as much at the service of the citizens as the first one. Now Tirana is losing the challenge with the needs of the market. While they do not affect the fulfillment of the need for housing for the mass population, what will these towers bring in terms of urban planning and real estate in Tirana?
We asked the well-known urban planner, Besnik Aliaj:
"The tower is a construction typology and model like all the others, but it is usually used, either to show development potential, or to maximize construction efficiency, because it requires less land and accommodates more people, families and offices and Services. So, from the financial side, there is more leverage for the public or private investor. The cost is that, due to the density of residents and offices, it requires more infrastructure, Services and public space, green space, parking, sports space, etc.
Does the real estate market need so many constructions?
In Tirana, there are about 30 empty, unoccupied, unsold or unfinished apartments, while more and more are being built and even more permits are issued. Normally, when you have more apartments, the market is saturated.
The ironic thing about us is the fact that we have empty apartments and at the same time we have many homeless people.
Many market operators predict that there will be a deadlock in the real estate market in the last two or three years, driven by both the drop in demand and the inflation of prices relative to the purchasing power in the country. The demand for houses will be mainly supplied by new residents coming to Tirana from the districts, who do not have the power to absorb the new constructions at these prices that are offered.
Regarding the risk ratio of the increase in the stock of constructions and the solidification in concrete of large amounts of money that can affect the economic crisis, the urbanist Aliaj says:
Although the rental market has recently developed, the prices of new constructions are increasing, when 2/3 of the population is poor or unable to buy a home. Loans are expensive and difficult to access for this special category. Other layers in the state have solved housing privately. Then, when our economy does not produce, where does the money come from?! And for whom are these new apartments built? This is unclear and demonstrates the informal and pyramidal nature of the construction market.
What are the new constructions in progress?
Book Building project, Tirana
Multifunctional building 4, 5, 11 and 21 floors, with 3 underground floors, Book Building between 28 Nëntori street and Abdi Toptani street, with developer Techno-Alb sh.pk
The project envisages the construction of three buildings with a height of 3, 4, 10 and 20 floors, with an area of over 40 thousand square meters.
Tirana's Rock
Next to the Tirana Hotel, the construction of the Tirana's Rock tower, 85 meters high and with 25 floors, has been presented. The tower will serve as a commercial, business and residential center and will be built by Ana sh.pk
Forest Tower
On Kavaja Street, in Tirana, where the Museum building was previously located
A tower of 24 floors will be built in the form of a vertical forest.
The tower is being built under the new trend of the Italian architect, Stefano Boeri, where the building from start to finish will be dominated in the exterior by greenery.
Down Town Albania
Down Town Albania, at the former children's toy park, 7 dwarfs, a tower with 40 floors, with different functions, divided by floors, where 2912 m² of the first floors will serve as commercial space.
Office premises will be located on the following floors, with an area of 21840 m². On the upper floors, to offer the best views from the height of the tower, the residences are positioned with an area of about 26208 m². The works are being carried out by one of the largest firms in the country, Kastrati, while a while ago, Balfin, the largest group in the country, withdrew from the construction of the Down Town Albania tower.
Tirana Forever Green
After some time of suspension, the works have started for the 20-storey building near the center in front of the Orthodox Church, named Tirana Forever Green. The building, now a carabiner, occupies an area of more than 12.400 m² and has 20 floors, of which four are underground. The tower will have 4 levels of underground parking, commercial spaces, shops, 7 office levels, 8 residential levels and a super luxury hotel, with an investment of 25 million euros.
MET Building Tirana
MET Building Tirana is the project for a new commercial building with 12 floors in the heart of Tirana. The MET Building Tirana project will fill the vacant spaces of the central area of Tirana, completing the urban redevelopment process that is currently underway. Within a block full of prestigious buildings and functions, the design of the new building pays particular attention to outdoor living and outdoor furnishings.
Lakeview Residences
The project includes housing construction with an area of 129,000 m² on Rruga e Kosovare near the Zoo. The project will be developed by the company Gener 2.
According to Monitor.al:
Only in the first quarter of 2019, the Municipality of Tirana has given permission for the construction of residential buildings with an area exceeding 479 thousand m², with an approximate value of about 141 million euros.
