A recent residential market report conducted by Balkimo (a leading residential and commercial property co) states that with steady and continuous economic growth in Albania, the past decade has witnessed a surge in urban regeneration with the construction of many new residential developments in the main cities.

The ‘New Urban Market’ has been fuelled by people’s demands for higher quality and newer properties and the clients for this market have predominantly been investors and the local market with new wealth as opportunities and new businesses have flourished.

As Albania’s economy and growth as a tourist destination has recently flourished, a different property market which is relatively new to the country has emerged. The ‘Tourist’ and in some cases ‘Second Home’ market has begun. Predominantly these new markets have been initiated and dominated by early coastal developments and with them have come not only the new Albanians with money but also foreign purchasers. 

Also, new large urban residential developments outside of Tirana have dominated the market in the past 12 months as it is difficult to obtain building permit inside the capital. 

Large vacation resorts are planned by foreign investors and will come to fruition in the next years but in general urban demand remains weak even if first home ownership is the incentive for most local buyers with off-plan apartments forming the bulk of sales.

Like in many other Eastern European countries, the prices in Albania are denominated in Euros and all transaction are completed in Euros.  New high-end residential developments in Tirana centre maintain the highest asking prices at €2’750/sqm. In the mid-market prices for new apartments range from €500-800/sqm. Most projects have similar pricing irrespective of the size, quality or location, which is a sign that the market is still developing.

Looking ahead it is estimated that urban residential prices are set to continue a downturn pattern taking values back to the level they were some years ago. On the other hand, well priced and well located coastal properties are facing continuous demand.

Source: Balkimo ( www.balkimo.com )