The increase in apartment prices has begun to affect the downward trend in demand for properties with a selling price of over 1,500 euros/m².

Real estate agents claim that even rising interest rates on loans and the lack of an amnesty for undeclared income are shrinking the number of property buyers. 

Both experts and builders do not predict a drop in prices. The increase in taxes from the change in reference prices, according to the Association of Builders, is expected to increase the price of properties from 150 to 300 euros/m². Foreign investments in real estate are also on the decline. 

The real estate market in Tirana, according to real estate agents, has started the autumn season with lower demand for apartments. This trend is expected to continue in the coming months.

The head of the "Future Home" real estate agency, Fatjon Hysenbelliu said for Monitor that the demand for properties located near the center, with a selling price of over 1,500 euros/m², has decreased. This trend has also been seen for other housing in areas close to the center.

In contrast, the demand for residential apartments in buildings built in the last 2-3 years and newly completed constructions in areas outside the Small Ring in Tirana is the same as last year.

“The trend of increasing property prices, unaffordable by the general mass of the population, as well as the increase in demand for purchases in the coastal areas of the South, are some of the reasons that are affecting the contraction of demand," he asserts.

Builders' expectations for sales contracts are also on the decline. According to the survey of the Bank of Albania for business and consumer confidence, in September, the indicator representing the balance of ordering contracts in construction recorded a negative value of 22.9 points, deepening even more from the level of 18.3 points in August 2023.

The results of the survey indicator for commissioning contracts (sales) are measured through the survey after the evaluations given by the builders through the answers: more than enough (above normal, sufficient (normal for the season), not enough (below normal). 

For the question "How do you evaluate orders (ordering contracts) currently?" The deterioration of the balance indicates that more and more builders expect a decrease in orders rather than an increase.