Construction and Prices

It would be a great social benefit if the Albanian builders will get out of their hands a satisfactory amount of houses. If their price from year to year will become more appealing to customers, probably a part of new constructions history would be different. But so far none of these did not happen in the real world Albanian builders.
And what we have in this country?
– A “saga” construction with scary quality
– Number of palaces built wanting to fill the gap of 3-5 times more than is necessary
– Unlike many other products in the country, its cost per unit (apartments) are increasingly tending towards increasing prices even higher.
At first glance, there is nothing wrong with the construction industry. In the market there are a considerable number of communists, who are in strong competition with each other.
State barriers to create a building society are minimal. Labor power is a classic example of the diversity of forms with construction subcontractors or small working groups has a competition stronger within her. From the every point of view of housing construction sector is a perfect example of the competition. If we follow the theory would have a huge amount of product (apartments) and of course with the lowest cost possible. The obvious theory and practice collide with each other bitterly in the case.
So, what is wrong?
In fact, the first signals of the market, home-builders are more effective. They quickly and skillfully modify their situation changes depending on the circumstances. What they produce their clients require, but not the prices they would pay to meet the requirements that would have. Construction industry in Albania has not always been so inadequate. During the ’70s the country was building a housing boom. Also the ’80 had a higher number of buildings. The statistics are least prepared to prove this housing situation that lasted until the early ’90s. A triumph of the housing sector could be called this time selling enough to free them that those years were a tenant. Although those who have had years to reduce this amount to a minimum through multi-year lease payment.
Factors contributed to the construction costs and lower selling prices in the early ’90s they were among others:
– Cost of materials used free;
– Cost-free land (except for value-based Electrical Degree infrastructure) on which built;
– Very small additional cost;
– Planning and building more controlled;
– Costs and barriers to state very negligible;
– Lack of corruption Journeyman Electrician Job Duties and
– The free labor that was used in these constructions.
Although these buildings are under construction specialists have gaps of time that they were built, they stood and is standing the test time is best. They proved a best thing, which are built strong and resistant. And are still attractive to buyers, affecting market prices of housing.
But with new constructions, what happens?
Go to any Builder or surrounding buildings in its center and you will find that with good shops and apartments will have large land owners. Early successor of landed housing or smart buyers at the start of the 90 are key benefits from this industry. Land-bank asset is their stable. Although construction sector is described as a profitable industry in the world, with land prices that are rising and omissions in the construction cycle by the state makes housing prices rise.
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