Tourism keeps business investments in new properties growing

2025-09-12 08:26:00, Aktualitet CNA

New business investments in property are increasing significantly this year as well.

Based on INSTAT data, the value of construction permits for non-residential purposes (which includes construction for commercial, industrial purposes, offices, hotels, etc.) for the first half of this year reached 15.1 billion lek or about 155 million Euros.

The value of new investments in these buildings is up 49% compared to the same period last year.

The growth has come mainly from investments in hotel construction. 58% of the value of new business construction is related to hotel construction projects. Hotels have also made the main contribution to the increase in value, while investments in other constructions, for commercial or industrial purposes, are in decline.

The number of permits for the first half of the year, however, shows a slight decrease to 151, from 176 in the same period last year.

The positive cycle of the Albanian economy in recent years seems to have also positively influenced new business investments in property. In particular, the growth of tourism has increased the demand for new accommodation capacities and has encouraged increased investment in hotels.

Also, the growth of the real estate market and the positive perception about developments in this market seem to have encouraged investments in construction for commercial or industrial uses.

The growing trend of investments in real estate is also being evidenced by the increase in bank financing for this purpose.

According to data from the Bank of Albania for the first 7 months of this year, businesses have received around 33 billion lek in loans for the purchase or construction of properties. Compared to the same period a year ago, new property loans have increased by 13%.

Low interest rates and the banking sector's high supply of credit have also contributed to encouraging business investments in property.

Real estate loans have now become the main product in the business segment as well. Based on data from the Bank of Albania, at the end of July the total loan portfolio for the purchase of real estate by businesses reached 198 billion lek or two billion euros./ Monitor