The slowdown in demand is not expected to curb the increase in prices in Tirana

2024-12-29 08:43:00, Ekonomi CNA

According to the leaders of the main real estate agencies in Tirana, the demand for property purchases continues to be slowed down compared to the previous year.

"Even though the demand is currently alive, compared to the summer months when it decreased, influenced by the relocation of higher purchases to the coastal areas, it is still noticeable that the demand is slower compared to 2023", said the head of the "Future" agency Home", Fatjon Hysenbelliu.

But the slowdown in demand has not stopped the rise in prices. In Tirana, the increase in prices has not stopped even during 2024. In July, apartment prices in some of the central areas increased by 10 to 16%, compared to July 2023, according to data from real estate agencies.

Specifically, in some areas, such as the one near the Dinamo stadium, the maximum price reached 2,900 euros/m² from 2,600 euros/m² in 2023. The increase was 16%.

Near the Olympic Park in Tirana, in one of the new complexes being built, in July 2024, sales prices reached from 2,200 euros minimum value to 2,900 euros/m² maximum value.

In this area, sales prices in 2023 ranged from 2,300 to 2,600 euros/m². The increase was 10%. Inside Tirana's Ring Road, the sale prices of apartments are over 2,300 euros/m².

There was also an increase in prices in the peripheral areas. According to real estate agents, the increase in prices has been influenced by the increase in demand, as young families cannot afford to buy a house in central areas. In Kombinat, apartment prices in July reached 1,200 to 1,300 euros/m² from 1,100 last year. Increase from 9 to 18%.

In the "Astirit" area, prices fluctuated from 1,200 to 1,300 euros per m² in the first lines of construction, from 1,250 euros/m² that was years ago. In this area, prices have increased by 4%.

In the area of ??Fresko, the sale prices of apartments from 900-1000 euros/m² have reached 1,100 euros/m². The increase is about 11%. In Paskuqan, from 850-900 euros/m², prices have reached 1,050 euros/m², due to high demand according to real estate agents.

Builders have again warned of price increases due to the increased cost of infrastructure tax, while demand remains low.

Ylli Sula, from the "Key Data" index, predicts that another increase in prices will be inevitable in terms of the increase in the obligation for the infrastructure tax with the entry into force of the reference prices in 2023.

It happened differently in many European cities, analyzed by the "Global Wealth Management" agency. In the cities where the high risk of a real estate bubble appeared in previous years, it turned out that the strongest price corrections were recorded.

Adjusted for inflation, prices are on average 15% lower than in mid-2022, when interest rates started to rise globally. Real prices in cities such as: Frankfurt, Munich, Stockholm, Hong Kong and Paris are 20% more than the peak level reached after the pandemic.

While in cities like Vancouver, Toronto and Amsterdam, there was a significant drop in prices of about 10% in real terms./ Monitor Magazine