Keydata index / From January 2021, apartments became more expensive by 41%

2024-03-22 07:12:00, Ekonomi CNA

In Tirana, the average selling price of apartments per square meter until the end of December 2023 reached 1,548 euros from 1,095 euros in the first quarter of 2021, according to the index data of "Keydata Albania", a publication by Çelësi Media Group . Compared to the beginning of 2021, the average sale prices of apartments increased by 41%.

Median prices have also moved within the range of 991 euros/m² to 1,452 euros/m², accompanied by a 42.1% increase from the first quarter of 2021 to the last quarter of 2023.

The report analyzes that the increase in prices started in the first quarter of 2021, after the period of the Covid-19 pandemic. From one quarter to the next, starting from 2021, the average price increase ranges from 1.7 to 6.2%. The highest tightening was from the third quarter to the fourth quarter of 2023, respectively by 21%.

The average price increase is characterized for the three largest zonal divisions: within the Small Ring, ex-Block and outside the Small Ring.

Within the Small Ring, the average sale price of the fourth quarter of 2023 reached 1,804 euros/m². Average prices compared to the first quarter of 2021 increased by about 56%.

In the area of ??the former Block, the average sale price of the fourth quarter of 2023 reached 2,160 euros/m². Average prices compared to the first quarter of 2021 increased by 45%.

There has also been an upward trend in the average selling prices of apartments for properties outside the Small Ring Road. Average real prices in this area, until the fourth quarter of 2023, reached 1,434 euros/m². From the first quarter of 2021 to the last quarter of 2023, average prices have increased by 38.3%.

Compared to 2005, the earliest year when the calculation started, the price index has increased 1.5 times. As a comparative basis for all the periods included in the assessment, "Keydata" experts have defined the year 2005 as a period that meets the criteria and conditions of a stable moment for the real estate market. The value of the index for the year 2005 is set at 100.

Index of real prices of apartments in the city of Tirana for the period of quarters 2021-2023

Graph 1 shows the evolution curve over time of the index of the real sale price of apartments in Tirana for the period of quarters 2021-2023. The value of the index for the year 2005 is set at 100.

From the first quarter of 2021 to the last quarter of 2023, the real sale price of apartments in Tirana has increased by 47.49%. Cumulative inflation for the quarters 2021-2023 is estimated at 52.3%.

Referring to the graph above, the curve of the price index of the sale of apartments in Tirana has undergone several fluctuations during this period of time, among which we would highlight:

The main moments of growth are listed as follows: First quarter 2021 to second quarter 2023; the index increased by: 1.70%, 5.56%, 3.00%, 0.72% and 6.24% respectively from one quarter to another.
From the third quarter to the fourth quarter of 2023, the index has increased by a higher percentage, namely by 21%.
A decrease in the index is observed from the second quarter to the third quarter 2023, a decrease of 1.04%.

Graph 2 above shows the real average sale price of apartments in Tirana in Euro/m2 for the period of quarters 2021-2023, expressed in real value (deflated with the inflation rate) as well as median prices (middle value). From the first quarter of 2021 to the fourth quarter of 2023, the level of average real prices in Tirana has moved within the range of 1,095 euros/m2 - 1,548 euros/m2, marking an increase of 41.36%. Median prices have moved within the range of 991 euros/m2 to 1,452 euros/m2, accompanied by a 42.1% increase from the first quarter of 2021 to the last quarter of 2023.

In the last quarter of 2023, the average and median prices are calculated at 1,548 euros/m2 and 1,452 euros/m2, respectively. Compared to the third quarter of 2023, in this quarter, the real average sale prices of apartments in Tirana have increased by 5.67%, while the median prices have increased by 4.69%.

Average prices, unlike the price index, are calculated in proportion to the number of apartments that are for sale in a given period. Thus, an increase or decrease in average prices should not necessarily be interpreted as a phenomenon that may have occurred in the real estate market. It can be interpreted with the fact that at a certain moment, the offer for apartments has increased or decreased.

Average prices at Unaza e Vogel increased by around 56%

In Graph 3, the average real and median price of the sale of apartments in Tirana (Euro/m2) in the area within the Small Ring Road for the period of quarters 2021-2023 is presented. As can be seen from the graph, the average real sale price in this area has been increasing, in the range of 1,157 - 1,804 euros/m2. Median prices fluctuate between 1,084 - 1,718 euros/m2. During this period, the average prices in this area have increased by 55.8%, while the median prices have increased by a higher percentage, 58.4% respectively.

An upward trend of prices in the area within the Small Ring is observed in the fourth quarter of 2023. In this quarter, the average price is calculated at 1,804 euros/m2; the median price is calculated at 1,718 euros/m2. Compared to the third quarter of 2023, in this quarter, the average prices increased by 15.88% and the median prices increased by 11.89%.

In the former Block area, average apartment prices increased by 45%

Graph 4 shows the evolution curve of the average real price and the median price (Euro/m2) of apartments in the Block area. In this area, the average sales prices have undergone a significant fluctuation, varying in the range of 1,488 euros/m2 - 2,160 euros/m2, while the median prices within the range of 1,417 euros/m2 - 2,021 euros/m2. During this period, the average prices increased by 45.14%, while the median prices increased by 42.6%.

An increase in the level of average real prices is observed in the second quarter of 2021, an increase of 6.2% compared to the first quarter of 2021 and again, an increase of 2.9% from the second quarter to the third quarter of 2021. A decrease in average prices is observed in this area from the third quarter of 2021 to the first quarter of 2022 with 3.14%.

From the first to the second quarter of 2022, prices have increased by 9.8% and a 13.4% increase from the third quarter to the last quarter. Regarding the current period, in this last quarter of 2023, on average, an apartment in the Block area is sold at the value of 2,160 euros/m2, the median price is calculated at the value of 2,021 euros/m2. The average prices in this quarter compared to the third quarter of 2023 have increased by 5.74%, while the median prices have increased by 0.71%.

For apartments outside the Little Ring, average selling prices rose 38%

Graph 5 shows the evolution of the average real price and the median sales price in Euro/m2 of apartments in the area outside the Small Ring. Average real prices in this area range from a range of 1,036 euros/m2 to 1,434 euros/m2 in the fourth quarter of 2023. Median prices range from 951 euros/m2 to 1,360 euros/m2.

Average real sale prices of apartments in this area have shown an upward trend throughout the period of quarters 2021-2023. From the first quarter of 2021 to the last quarter of 2023, average prices increased by 38.3%, while median prices increased by 42.8%.

A downward trend is observed in the last quarter of 2021, compared to the previous quarter, a decrease of 2.8% in the level of sale prices of apartments in the area outside the Small Ring. The last quarter of 2023 is characterized by an increase in the average sale prices of apartments in this area. Average real prices are calculated at 1,434 euros/m2, while median prices at the level of 1,360 euros/m2, marking an increase of 2.38% and 1.79% compared to a previous quarter. /Monitor