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Shkruar nga Eliza Gjediku
The increase in real estate prices is unstoppable. A survey conducted by the Bank of Albania shows that in the second half of 2024, housing prices increased by 23.6% compared to the first half. While compared to 2023, property prices increased by 44.5%, driven mostly by high prices in the capital.
"The sales price index in Tirana increased by 26.2% compared to the previous period and 56% compared to the level of a year ago," the survey states.
During this period, builders have reported increases in their costs, mainly for wages, electricity and transportation. But despite the high prices, the Bank of Albania says that demand for property is increasing, while the average time to sell a real estate property is decreasing.
To support this high demand for property, bank credit has increased for both businesses and citizens to purchase real estate. This has led to an increase in the debt burden of businesses and households.
On the other hand, banks have begun to limit the loans they are granting for properties, tightening standards, due to fears of a decline in borrowers' solvency.
"Half of the residential and commercial properties sold by them were purchased with bank loans. Of these, in 72% of cases, the loan covered up to 60% of the value ," the survey continues.
Meanwhile, the Bank of Albania says that a decrease in property purchases by foreign citizens has been noted, as in the second half of 2024, about 18% of apartments sold were reported to have been purchased by non-resident citizens, down from 26% in the first half. Of these, about 77% are citizens of EU countries. The year 2024 has also closed with an increase in the cost of housing rents, with the capital once again the main one due to high demand./ Shqiptarja.com
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