cAPITAL
Just a few days ago, Prime Minister Edi Rama gathered builders to present his vision and the reforms that will be undertaken for this sector. One of the concerns raised by the head of government was the method of financing the sector through the sale of apartments in the air.
"So that construction is not based on pre-sale and not based on clearing, because these are two forms that were understandable and acceptable for a certain period of time, but can no longer be understandable or acceptable today, when opportunities exist to have access to other forms of financing," said Rama.
But while the prime minister is calling for a ban on clearing and selling nothing, a government company in Durres is making a name for itself by selling apartments in the air.
Durrës Marina, the company specifically established to realize the large tourist resort in the Port of Durrës as a partnership between the Albanian government and businessman Mohamed Alabbar, reported 4.17 billion lek or nearly 43 million euros in receipts from contracts with customers, although its buildings are currently in the initial stages of construction.
According to the balance sheet submitted to the National Business Center, Durrës Marina collected 19.2 million euros during 2023 and another 23.7 million euros last year from apartment reservations.
This money was not reported as income in the company's financial statements, because its recognition will be made at the moment the apartments are transferred to the clients.
Sell and build
Durrës Marina was established as a joint stock company to implement the tourism project at the Port of Durrës. It is owned 67 percent by Mohamed Alabbar's Eagle Hills company and 33 percent by the Albanian government, through the company Albanian Seaports.
The company began field work in July 2023 and by the end of last year it had 3 buildings under construction, named A01, A02 and A04.
According to data from the official balance sheet, Durrës Marina has spent a total of 44 million euros on the works it has in progress. Of this money, 35 million euros are expenses for project development and construction of buildings, while 9 million euros are costs for improving the infrastructure.
In short, the company is strictly adhering to the sell-and-build model, as the amount collected from the sale of the apartments in the air is equal to the costs of the works in progress.
The Durrës Marina model
sells apartments through a standard agreement. According to it, 40 percent of the money for the purchase of the apartment must be paid before construction begins.
More specifically, the agreement stipulates that 20 percent of the total price is paid within 5 days of the preliminary sales agreement and the other 20 percent is paid within 6 months from the date of the construction permit.
This means that Durrës Marina does not need any financing from banks, at least up to this stage, as the company collects from contracts and builds.
However, the Durrës project is still far from being realized. Those who have pre-paid for their apartments will have to wait years to receive their homes.
Durrës Marina is expected to generate around 3.2 billion euros in total revenue, the vast majority of which will come from the sale of apartments.
Editorial
