Although in a difficult period, as a result of the crisis that the pandemic has caused in the economy, consumption and the performance of many businesses, rental shop prices have increased for 2021 in the main areas of Tirana. 

According to the updated data of the private index Keydata Albania, the average increase of business rents in the period January-May 2021 is 22% compared to the same period of 2020. 

The highest increase in rents for business premises is in the area of ​​"Former Bllok". Due to quarantine (March-May) and nightlife, the average rental price was 12.9 euros per square meter. For 2021 the rent is 21 euros per square meter. The increase is 38.5% compared to last year. The tendency for a higher increase of the rent price has appeared in the areas close to the center of the capital. For the former Exhibition area, shop rental prices increased by 41% and on Kavaja Street the increase is 21%. In areas far from the center, the growth is lower. In the area of ​​Zogu i Zi the prices have increased by 6%, in Don Bosko street 19%, in the Paris Commune 15% and in Elbasan street there is the smallest price change with 1%. 

Executives of real estate agencies in the country claimed that the main factor of increasing the rental prices of businesses in 2021 is money laundering. According to them, many of these properties have been purchased in a certain period and already the hardened illegal money does not encourage the owners to reduce the rental prices. 

Even the head of the newspaper "Çelësi" and the Keydata Albania index, Ylli Sula stated for Monitor that the price increase is not based on the economic logic of the market. "Many small businesses are in trouble because of the Covid-19 crisis. In this period we can not talk about business boom and no forecast for rapid growth in purchasing power. These are the main elements that would affect the flourishing of the business activity, which would also lead to an increase in store rent. So this growth is not influenced by market elements. " 

Due to the crisis from Covid-19 and the decline in turnover in 2020 according to the data of the Tax Directorate for entities that have passed passively for the period from May 1 to December 31 increased by 38% compared to the same period of 2019. In total there were about 6,600 entities that are added to the list of passive entities in the period in question, from about 4,800 for May-December 2019. The highest number of closed businesses belong to those entities that have linked their activity with the tourist season. 

Demand for new rental facilities for pharmacies and bakeries is increasing 

According to the general manager of the real estate "Devinf", Genci Ziko, the market demand for renting premises in this period is more oriented towards opening businesses of pharmacies, clothing, selling mobile phones and very little for bars and restaurants. 

The same tendency is confirmed by the leader of the Keydata index, Mr. Ylli Sula adding that the demand has also increased for rented premises of businesses such as: bakeries and shops selling organic food. 

According to him, the reasons for opening these businesses are from the competition to the launch of activities that guarantee a secure income. "Bakeries are increasingly seen as a safe business, as this product is always consumed by Albanian families. As far as pharmacies are concerned, it is more the logic of competition or the struggle of the big ones to occupy the main part of the market. In the pandemic period pharmacy profits increased. The end of the infection period will affect their turnover. For this reason, powerful pharmacies or pharmaceutical networks have increased the demand for new premises for rent. Even in the opening of luxury shops, food stores (profiled chains of organic products, which are sold at high prices) and clothing stores there is economic logic, that in times of crisis traders always aim to make a profit from the costs incurred by the rich strata and not from the poor or those with low incomes ", emphasizes Mr. Sula. 

How is the reconstruction of roads affecting the rental prices of shops 

According to the general manager of the real estate agency "Devinf", Genci Zike, interventions for works on improving the existing infrastructure for many areas of the capital have affected the rental prices of shops. He says that the works for the reconstruction of the roads have had a good and bad effect on the rental prices. The offer for new stores is not high. 

"The area of ​​"Zogu I Parë" boulevard, before, was not so important for starting a commercial activity. Following the completion of road reconstruction works, rental prices in this area have been revalued. Rental prices range from 15 to 20 euros per square meter. 

In the "Misto Mane" area, the placement of bars on both sides of the road (which does not allow you to cross to the other side) increased the difficulty of shop activity.

(Source: Monitor)