In the first half of this year, the real estate market has seen significant growth, with property prices selling on average 41.7% higher than the same period a year earlier. The national house price index has increased by 14.6% in six-month terms, making this period one of the most dynamic in the last decade.
The strongest price increase has been recorded in the Tirana area, where demand for apartments has been significantly higher. In many cases, the purchase price has remained unchanged or up to 5% lower than that requested by the sellers, indicating a narrow negotiation gap between the parties.
As for the average time needed to sell a property, it has increased nationally, reaching 11.6 months from 9.3 months previously. In Tirana, the average time to sell has increased significantly to 11.1 months from 7.1 months, while in coastal areas it has decreased to 8.7 months, indicating a high interest in properties near the sea.
Rents have also seen an upward trend, driven by the ever-increasing demand for rentals, especially in the capital. This factor is directly affecting market activity, with agents reporting that more and more individuals are preferring renting as an alternative to rising sales prices.
In the majority of transactions, financing was supported by bank loans. Around 58% of residential and commercial properties were purchased through loans, while in 62% of these cases, loans covered up to 60% of the property value.
Another influential element is the participation of foreign buyers. During this six-month period, 15% of properties sold were purchased by non-resident citizens, a somewhat lower figure compared to 18% in the same period last year.
