House purchasing is one of the most overwhelming decisions for anyone in Albania. It is an important long-term investment that provides better living conditions and possible profits in the future. The housing market is subject to several housing and social state policies that affect people’s decision on buying a house. Moreover, the market is also closely related to the banking sector and its lending activity. According to the Bank of Albania (BoA) most of the investments in immovable properties are made through loans, thus changes to the interest rate can have an impact on the entire construction sector. Changes to the price of immovable properties have a key role in the decisions taken by central banks all over the world and this was confirmed by the global crisis of 2007-2008. However, the way how these two sectors depend on each-other is difficult to understand if you’re don’t have a financial background.
The Albanian economy went through different stages during the recent decades as it passed from a centralized economy to a market economy. The construction sectors and the housing market gave a major contribution to economic growth during this period.
The housing market, as well as the price of immovable properties, reflected a significant growth during the 2000-2007 period, and it went through a period of stagnation after 2008.
The factors that affected the construction sector:
- Lack of housing premises
- Poor quality of existing buildings
- Changes to family formation and structure
- Demographic factors
- Higher demand for housing from migrants
- The consolidation of the banking system
- Currency rates
Real estate trends in Tirana
Real estate agents confirm a recent trend of people interest in buying properties in the suburbs of Tirana because of more affordable prices. The cost of an apartment in the suburbs of the capital city varies from Euro 40,000 to Euro 80,000. The Albanian government adopted the new referential prices on housing at the beginning of 2017 for the 32 cadastral areas of Tirana.
Increased interest for properties in coastal areas
If you’re interested in a seaside apartment, you can buy one in Saranda for Euro 750 per square meter. Saranda is the example of the boom in the construction sector. Albanian second home buyers at first started to buy properties in Golem area in Durres. Meanwhile, the entire coast is drawing more buyers both Albanian and internationals.
Italian pensioners find their Florida in Albania
An increased trend of Italian pensioners that come and live in Durres area was noticed during the recent years. They say that the living cost in Albania is too low compared to their homeland Italy. Roberto Mazzuca is a successful young Italian realtor that provides real estate solutions to Italian citizens that are interested in renting a property in Albania.
The Albanian coastline is the cheaper alternative to property investors and people that are looking for a seaside property. However, luxury properties are also available in Lalzit Bay or are under construction in Palasa, Dhermi. The good news about foreigners that buy an apartment or villa in Albania is that there is no restriction for them.
If you’re looking for a property in Albania, you can find it on the sites listed below:
Albanian Real Estate
Property in Albania
Albania Real Estate
Tirana Real Estate
Albania One Real Estate
Rainbow Real Estate
Century 21 Albania
Real Deal Properties