Residential Property Prices Rose 15% in Five Years, BoA Says

TIRANA, May 28

Home prices grew 15.2 percent between 2013 and 2018, the Bank of Albania (BoA) confirmed. The house price index was measured based on the data provided by real estate agents as well as property and construction companies.
According to the participants in BoA’s survey, over 54 percent of the residential and commercial properties were funded through the banking sector. Thus, rising demand for home loans was noticed during the fourth quarter, Q4 of 2018. On the other hand, the banking sector made it easier to qualify for a home loan. Moreover, the interest rate for property loans marked a slight increase during the second half of 2018.

Sentiment indicators in the real estate market confirm a bull market trend in this sector even though home prices are out of reach relative to average income.
According to BoA, demand in the housing market reflects trends related to demographic development, revenue progress, funding for property purchase and development. On the other hand, offer is related to the number of construction permits.
On its part, the Institute of Statistics (INSTAT) confirms a significant growth in the number of construction permits and gross floor area during 2018.

BoA’s findings show that only the central area of Tirana and its suburbs saw growth in real estate sales. Meanwhile, other areas throughout the country, the coastal area included saw a slight dip in sales.
BoA also examined the average time properties took to sell across Albania during the second half of 2018. The nationwide average time on market for a property during the mentioned period was 10.9 months or one month more than the first half of 2018.
The average time on market for Tirana increased up to two months, while for the coastal area the same indicator increased by 2.5 months.

News Source:  Monitor