TIRANA, October 10
House prices in Albania grew by 1.8 percent during the first half of 2019 according to the Bank of Albania (BoA). The finding was based on a report conducted by BoA with over 300 real estate agencies throughout Albania. The data show that house prices growth rate slowed a tad in 2019. Meanwhile, both the growing number of construction permits for new units and mortgage demand increase the supply of new houses, Monitor magazine reports.
In the meantime, BoA’s publication on the Consumer Trust report confirmed that the trust indicator in the construction sector dropped by 4.6 percent during the third quarter Q3.
Currently, the data on the real estate and housing market in Albania are limited. Erratic surveys by different institutions often result in contradictory findings. On the other hand, the Institute of Statistics (INSTAT) has a project on a house price index. Based on INSTAT’s official docs, the pilot index would be executed during 2019.
In the meantime, the biggest concern of the major agencies in the market is related to the situation of constructions in Tirana area. According to them, they are not based on empirical evidence or analysis of housing demand. Real estate operators said for Monitor that they expect a housing bubble in two or three years fueled by a decline in demand and inflated prices compared to the purchasing power.
Moreover, migration is also expected to have an impact in the future as it highly affects consumer buying power.
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