What would cause property prices to fall? Slowing tourism and credit constraints remain key factors
After the pandemic, real estate prices in Albania have seen a significant increase, especially in the capital, where demand and commercial activity are higher. However, this price increase has been pushed back by various factors, such as increased prosperity, increased tourism, and new construction standards, which are followed by high costs. In this wave of property price increases, Investropa's study has conducted an analysis to identify the scenario that could cause a price drop in Albania.
The most likely scenario that could cause a housing market downturn is a combination of a significant slowdown in tourism perhaps due to regional instability or a European recession and the tightening of bank lending standards, which reduces the flow of mortgage credit into the market.
Early warning signs that will indicate the beginning of a downturn include a significant increase in the number of days a property stays on the market (especially in Tirana, where it can exceed 12 months), the expansion of discounts above 15%, a decrease in applications for building permits, a decline in the number of foreign visitors, and an increase in non-performing loans from banks.
Based on historical patterns, a potential decline could bring price reductions of 10% to 25%, most pronounced in secondary areas and more moderate in the center of Tirana and coastal cities, where demand remains structural from multiple buyer segments. Such a decrease could affect not only buyers and investors, but also new developers, redistributing market dynamics and creating opportunities for undiscovered buyer segments, while those owning properties in strategic areas could benefit from sustained demand.
IV Diaspora Summit in Albania - Rama invites the "brains" of the nation: Come let's design the future
Under the motto "One nation, one heart, one future", the Minister for Europe and Foreign Affairs, Ferit Hoxha, has officially confirmed the holding of the......
Electricity network in the north, 35 million euros of investments - Credit, for the consequences of the 2019 earthquake. Interventions in Fushë-Krujë, Lezhë and Shkodër
35 million euros to improve the electricity transmission network in northern Albania after the 2019 earthquake. The investments will be carried out through......
Energy drove up inflation in Germany - The consequences of the war in the Middle East have begun to be felt
German inflation rose to its highest level since January 2024 in March, as a rise in energy prices driven by escalating tensions in the Middle East added......
Media conference, Kumbaro: Towards the conclusion of chapters 25 and 26 of the accession
Minister of Education Mirela Kumbaro held a press conference today with journalists covering education issues in the media to share some of the priorities,......
In Albania, care for relatives remains within the family/ According to Eurostat, only a small proportion uses professional services
Eurostat has published some data on households where at least one member needs long-term care due to health problems. The statistics show that this is an......
"Reduce oil demand, prepare for disruptions" - EU appeals to member states for savings due to war
European Commissioner Dan Jørgensen has urged member states to set out measures to reduce oil and gas use, particularly in transport, as the EU prepares for......
Clean energy, interest in Guarantee of Origin increases - Four companies apply within a few weeks to the Energy Regulatory Authority
Within a few weeks, four companies have applied to the Energy Regulatory Authority to be equipped with a Guarantee of Origin Certificate. These are Ener......
OBP at the high-level seminar at the British Embassy - Public Procurement as an Instrument of Economic Security
The Centralized Purchasing Operator (CPO) participated in the high-level seminar held at the British Embassy in Tirana, focused on economic security,......
