TIRANA, july.9- A World Bank report on urban development raised the issue of very high prices for housing in Albania, especially in large urban centers like Tirana and coastal cities like Durres and Vlora. According to the report, a middle class family can no longer afford a normal apartment. Rather, only people whose monthly salaries are over 500 euros can hope to take out a loan to purchase a house. Housing prices are kept high by many factors in Albania, one of which is the limited number of construction permits which is determined by the local government special territory regulating councils.
This limit also applies to small apartments that are no larger than 60-65 square meters. Even at this level, most Albanians who work in the public sector or the unqualified private sector are unable to afford a house and often need assistance sent by relatives working aboard in order to solve their housing problem.
Formally, the construction cost of building one square meter is 300 euro while its being sold for no less than 600 euros.
The WB Report recommends the liberalization of the housing market in order to bring the prices down.
