Flats in Albania rise in price despite global problems
From the third quarter of 2022, the property market in Albania experienced a decline in property values. However, an increase in activity has started since 2023. Since June, there has been a positive dynamic. Experts note the growth of prices for flats in Albania. This trend will continue until the end of the year.
In the period from 2013 to mid-2022, there was a regular increase in the cost of real estate in the country. During this period, prices rose by 110%, almost double the European average. From the second half of 2022, the activity in the market started to decrease, which contributed to the decline in the prices of apartments and houses.
The Bank of Albania conducted a survey among developers. Compared to the previous months, the number of developers confident in the growth of property prices increased by 23%. The business optimism index, which tracks sentiment in the construction sector, also rose. It reached a record high in June 2023 and increased by 2.2% in just one month.
Overview of Albanian house and apartment prices:
– between June and December 2022, house prices increased by almost 17% compared to 2021 figures. However, in the first half of 2022, prices fell by around 9%;
– the most significant increase in house prices is in the capital of Albania. Here, the cost per square metre in some complexes reaches up to 6 thousand euros;
– in the suburbs, the price is around 1,000 euros per square metre;
– the average price per square metre in the city is between 1.5 and 3.5 thousand euro.
Coastal properties are popular with buyers. In Albania, homes in such locations are less expensive than in other European countries such as Montenegro and Croatia.
Real estate market analysis for five years
The central bank presented an overview of the local housing market, covering the period from 2017 to 2022. The analysis used data from advertisements on specialised websites, covering three regions – Tirana, the coast and the rest of the country.
According to the report, the highest increase in the price of apartments and houses in Albania occurred after the pandemic. In the first six months of 2022, prices increased by 15.6% compared to the figures for 2021. The most expensive properties were in and around Tirana, followed by resorts. In addition, analysts note a serious gap between the prices of properties in the capital and other regions of the country. For example, the cost of an apartment in Tirana is 35% higher than in coastal areas and 56% higher than in other parts of Albania.