Tax increase to hamper real estate market: Expert

Tax increases are exerting a deterrent pressure on the property market.

Lefter Sila, a real estate agent, states the increase in income tax has considerably reduced the market in the sales segment, as well as the rental one.

Not by chance, the process of property revaluation versus a 2% tariff brought about a significant increase in sales earlier this year.

“Every tax increase greatly affects the progress of real estate transactions. This is not a big increase, I mean in property tax, but if you get into the tax compound that is the income tax from the sale, the difference of which is 15%, or the rent income tax that is 15%, all together, of course, affect the citizens and the purchasing population of the population, and at the same time the retailers.”

“When the revaluation of real estate emerged, there was a noticeable increase in the number of transactions because customers paid only 2% of the difference out of 15%. At this time that the reevaluation period is over, the transactions have also fallen,” Sila said.

Mr. Sila is pessimistic about the market performance in the near future.

According to him, there is a strong rise in prices, especially for constructions started after 2015.

He thinks that prices are becoming more and more unaffordable for the market’s purchasing power.

“I notice that starting from 2015 there are more construction permits. This means that the offer will be very large. However, this offer is accompanied by a large increase in prices, especially for apartment buildings that are being built after 2015. Those before 2015 are at very low prices, whether new or existing ones. And those that are being built now, they have a price 30% more expensive than the first ones. Let’s see, time will tell, but my opinion is that selling will get harder,” Sila said.

Although the property market still has a fluctuating performance, experts have seen an improvement in sales and a tendency for price increases in the last two years, especially in peripheral areas, where demand is also higher due to more affordable prices.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.