House prices have continued to increase in the second half of last year. According to the Bank of Albania, the Fischer House Price Index increased by 8.4% in the second half of 2021 compared to the first half of the year and by 9% on an annual basis.

This change shows that, especially during the second half of 2021, the growth of housing prices in the country has accelerated significantly.

However, referring to the periodic survey of the Bank of Albania, the annual growth of house prices was slower, compared to the level of 11.3% in 2020.

The trend of rising house prices has continued for the largest property market in the country, that of Tirana.

Housing prices in the capital increased by 8.5% compared to the second half of 2020 and by 12.3% compared to the same period a year earlier.

The number of units sold in the most preferred areas of the capital was twice as high compared to the volume of sales realized during the first half of the year.

The Bank of Albania survey confirms that property prices continue to rise, albeit at a somewhat slower pace compared to 2020.

Market agents' expectations are again optimistic for the near future, despite inflationary developments. Agents also expect real estate prices to rise for residential and commercial properties.

However, this six-month survey was conducted before the outbreak of war in Ukraine and does not include the potential impact of this factor on the perception and expectations of market players.

Information on price performance and assessment of the situation in the real estate market is obtained through field observation of a sample of 230 entities, whose main activity is real estate trading and construction, whose sales represent about 75% -80% of market turnover.

In the perception of market players, bank credit remains an important factor in supporting demand. According to agents, as in the previous period, about 30% of residential and commercial properties sold by them were purchased on bank loans.