Foreign investments in property reached a new record in the first half of the year

2024-09-26 08:30:00, Aktualitet CNA

Foreign investments in property reached a new record in the first half of the

Illustrative photo, taken from Google

Real estate is leading foreign direct investment this year as well.

According to data from the Bank of Albania, for the second quarter of this year foreign investments in real estate in Albania reached the value of 97 million euros, the highest ever recorded for this period of the year. Compared to the same period last year, foreign investments in property have increased by 24%.

In the same line are the progressive figures of the 6th month of 2024. Foreign direct investments in real estate reached the value of 181 million euros, increasing by 43% compared to the 6th month of 2023. The progressive values ??are also the highest historical foreign direct investments in properties for the period. Foreign investments in real estate accounted for more than 24% of foreign direct investments for the 6 months of 2024.

Purchases by foreign nationals or non-residents have been an important factor in the real estate boom in recent years. The discovery of Albania as a tourist destination, lower cost of living and relatively cheaper prices compared to competing markets have led many foreign citizens or Albanians living abroad to invest in a property in Albania, especially in the coastal areas.

According to the survey of the Bank of Albania on the progress of the real estate market, in the first 6 months of this year, about 27% of the apartments sold were reported to have been purchased by non-resident citizens. Of these, about 61% are citizens of European Union countries.

The second sector in terms of the value of foreign direct investments in the first half of this year was that of financial activities. Foreign direct investments in this sector reached the value of 126 million euros, with an increase of 7% compared to the first half of last year.

Especially the banking sector continues to bring significant investment flows, supported by high annual profits, but also by the increase in regulatory requirements for capital in recent years.

Source: Bank of Albania

The extractive industry sector follows, with a total investment value of 101 million euros. However, investments in this sector have fallen by 32% compared to a year ago. Flows in this sector consist mainly of reinvested profits of existing companies in the activity of crude oil extraction.

The fourth sector in terms of the value of foreign investments is the processing industry, with 90 million euros for the first six months of the year. Foreign investments in this sector have doubled compared to the same period last year.

In recent years, the energy sector has reduced its contribution to foreign direct investments. For the 6-month period, investments in this sector were worth 73 million euros, 7% more compared to a year ago.

Energy led the growth of foreign direct investment in Albania for years, mainly thanks to the major investment in the TAP gas pipeline, but also to other important foreign investment projects, especially in hydropower. After the completion of these projects, the pace of investments in these investments marked a decrease, but nevertheless in recent years there is a growing interest, especially in energy from solar sources.

According to data from the Bank of Albania, foreign direct investments in the first half of the year reached a record figure of 749 million euros, the highest historical level ever recorded for this period of the year. The value of foreign direct investments so far this year has increased by 8% compared to the same period a year ago.