TIRANA, October 14
Properties got harder to sell during 2019. The data was confirmed by a survey conducted by the Bank of Albania (BoA) with residential and commercial contractors and real estate brokers.
According to the respondents in Tirana, the average time to sell a property in the capital city during the first half of 2019 was 11.1 months or 1.2 months longer compared to the previous six months. In the meantime, the average time properties took to sell across Albania during the same period was 9.9 months or 1 month less compared to the previous six months.
According to the same survey, the average time to sell a property on the seaside increased to 8.3 months, up from 7.4 months. Meanwhile, the average time in other areas was reduced from 13.2 months to 9.2 months.
There’s a range of different factors at play when selling a home, but the data confirm that the oversupply of properties in Tirana and coastal areas affects the selling time.
The data provided by the Albanian Institute of Statistics (INSTAT) show that over 205 construction permits were issued in Tirana during the first half of 2019. A year-over-year comparison shows an increase of 25percent.
In the meantime, even the construction surface during January – June 2019 increased by 136 percent compared to the same period of 2018.
Major developments currently under construction include Downtown One Tirana, a 140-meter mixed-use skyscraper next to ETC building.
Book Building behind the Clock Tower of Tirana is a 21storey upper-class multifunctional building.
MET Building next to the former Dajti Hotel is a 12storey mixed-use building. Meanwhile, the Eyes of Tirana is a large high-rise development project between Kavaja and Durresi streets. The Blloku Cube.
On their part, contractors have noticed the first difficulties in property selling due to property oversupply. Meanwhile, high migration and low fertility rates over the years are having an impact on the housing market. On the other hand, international trends show that millennials, who make a quarter of the world’s population, are not buying houses because they can’t afford them or are in no rush of owning one. Delayed or fewer marriages, unstable incomes, rising rents, inability to save money are among the factors that reduce chances of landing on a home of their own.
Real estate investment in Albania appeals to international second-home buyers and to those interested in obtaining an Albanian residency permit.
Read also: Real Estate in Albania