Waiting for residences from Kurti Government

The couple, now a year old, live in a rented residence in Pristina.

If we were allowed to buy the residence according to the Government's plan, it would be a vital solution to us”, Albert told Radio Free Europe.

The current Kosovo government, which was elected in March 2021, has promised the construction of 4,000 residential units.

Under its programme, beneficiary families would become homeowners of only 120 monthly installments, respectively, 150 euros a month, for a period of 150 months.

The priority would be to have young couples, who have limited financial opportunities to buy market-priced housing.

Although more than two years have passed since this promise has become formal, the construction of these dwellings has not begun.

In the Government of Kosovo, free Europe says they have already drafted the new draft of the bill, according to the feasibility study recommendations for the social residence programme adequate for Kosovo.

They also say that during August, they target “that they complete the concept-document, to proceed further with the finalisation of the draft constitution”.

But they give no details of when apartment construction can begin and end.

In February of this year, the Ministry of Environment, Space Planning and Infrastructure of Kosovo and the International Finance Corporation have signed an agreement on feasibility study for residential and affordable costs. The construction cost for the project is said to be brought in at around 200m euros.

Kosovo Prime Minister Albin Kurti has said then that the project will begin to be implemented this year.

“As Government we will make it impossible for the project planned to build 4,000 residential units to be realised as soon as possible”, Kurti said.

Building residences would take place in larger municipalities: Pristina, Peja, Prizren, Mitrovica and Gjilan.

Away From Applying the Promise

Brahim Selimaj, owner of a construction company in Kosovo, tells Radio Free Europe that the construction of 4,000 residential units cannot be realised within the government's remaining mandate.

“Under Kosovo's conditions, when one or two years should be expected for a construction permit, it is impossible to realise [this promise] in [the government's] first mandate. Construction of 4,000 residential units could last the minimum two years. Construction could last five more years”, Selimaj says.

Furthermore, he adds, construction costs have seen increases compared to three years ago.

Kosovo Statistics Agency data (ASK) shows that the overall construction cost index has undergone an increase of 3.3 percent in the first quarter of 2023, compared to the first quarter of 2022.

Prices on the Market of Realities

Price hikes have suffered almost all consumer products.

Last year, Kosovo has closed at the average inflation rate of nearly 12 per cent.

Albert, who works in the hotel in the private sector and pays about 500 euros a month, says he pays 250 euros in rent and that it is impossible for him to buy flats at current prices.

With these flat prices being brought to market, 1,000 euro square euros, even 100 years if I work at this job, I can't afford it. For a loan, the monthly tranche is 500 euros”, he says.

For a new residence in Pristina, depending on location, the buyer must pay from 900 euros to over 2,500 euros per square metre.

Prices are similar in Prizren ʹ some 85 km from the capital, while slightly lower are in other cities, such as: I served Kosovo, Ferizaj, Gjilan and Pec.

Representatives of real estate agencies have said earlier about The REL does not expect new housing prices to mark decline this year, in view of the fact that they are built with more expensive materials.

With the Government's plan for 4,000 new residences, the price of a 60 - square - foot [60 sq m] residence would range from 18,000 euros to 22,500 euros. / REL