Retail and office markets signal recovery

TIRANA, April 19 – Both office and retail markets picked up during the second half of 2010 marking lower vacancy rates while maintaining stable rents, according to Colliers International Albania’s biannual research of the Real Estate Review.
“2010 was a challenging year for Albania’s real estate market, however, we believe 2011 will bring further stability in the office and retail markets in Tirana and further growth in the retail segment by welcoming the newest shopping mall in Tirana East Gate,” said Stela Dhami, General Manager of Colliers International Albania.
During the second half of 2010, no new supply was added to either office or retail market segments in Tirana and this trend will continue until the second half of 2011.
Vacancy rates in the office market experienced a moderate drop of 3.7% in the second half of 2010 reaching the total office market vacancy level of 13.6% or the equivalent of 6,600 sq. m. Parallel to offices, the retail market experienced a drop in vacancy rates with at least 2%, in the second half of 2010 compared with the previous period, reaching the level of 8% or 9,100 sq. m.
Average rental prices continue to vary from 19.5 euro/sq. m, 15 euro/sq. m and 13 euro/sq. m in grade A, B+ and B office buildings respectively. Within shopping centres, prime rents vary from 10-33 euro/sq. m. High streets in Tirana have registered rental rates varying from 12-50 euro/sq. m leaving mid to low quality retail streets with a range of rental prices from 5-30 euro/sq. m.
Colliers forecasts a stable first half of 2011 in rental prices and vacancy rates for both office and retail markets with a further increase in the retail stock of about 41,200 sq. m entering the market within the second half of 2011 through Tirana East Gate located in the outskirts of Tirana only 4km away from the center.
Colliers International opened an office in Tirana, Albania in 2007 as an integral part of Colliers International Southeast Europe, which also has offices in Athens, Belgrade, Dubrovnik, Nis, Novi Sad, Sofia, Split, Podgorica, Varna and Zagreb.