TIRANA, Aug 02נThe latest Balkimo Residential market report in Albania states that with steady but continuous economic growth, the past decade has witnessed a surge in urban regeneration with the construction of many new residential developments in the main cities. The ‘New Urban Market’ has been fuelled by people’s demands for higher quality and newer properties and the clients for this market have predominantly been investors and the local market with new wealth as opportunities and new businesses have flourished.
As Albania’s economy and growth as a tourist destination has recently flourished, a different property market which is relatively new to the country has emerged. The ‘Tourist’ and in some cases ‘Second Home’ market has begun. Predominantly these new markets have been initiated and dominated by early coastal developments and with them have come not only the new Albanians with money but also foreign purchasers.
On the coast local builders not really concerned or aware of market demand are still constructing the typical eight storey mid quality building with apartments averaging 75sqm. Nevertheless, in 2008/2009 a small number of international developers have been expanding their businesses in Albania. Large vacation resorts are planned by foreign investors and will come to fruition in the next years.
In general urban demand remains weak even if first home ownership is the incentive for most local buyers with off-plan apartments forming the bulk of sales.
Like in many other Eastern European countries, the prices in Albania are denominated in Euros and all transaction are completed in Euros. New high-end residential developments in Tirana centre maintain the highest asking prices with the gold medal at 2’750/sqm. In the mid-market prices for new apartments range from 500-800/sqm. Most projects have similar pricing irrespective of the size, quality or location, which is a sign that the market is still developing.
The mid-market forms the majority of property transactions. More expensive apartment’s average from 1’200-1’600 per square meter, many of them have remained on the market for long periods, representing a downward trend when compared to past years.
Looking ahead, Balkimo estimates that urban residential prices are set to continue a downturn pattern taking values back to the level they were some years ago. On the other hand, well priced and well located coastal properties are facing continuous demand.
Balkimo is the largest Real Estate agency in Albania founded in 2004 by a Swiss entrepreneur living in Albania since years and offering “foreign” versus “local” practice in the property market. It provides: Buy/ sell representation, Rent & Lease, Off Plan investment, Nonresident mortgage, Land banking, property management, maintenance contract, owner representation, appraisal services, market research and property tour in residential and commercial to local and international investors. In April 2009, Balkimo became the agent of Savills one of the largest International property consultants with 19’500 employees and 200 offices worldwide.
