Number  of transactions in the real estate market increased by 23% in the first half of this year.

According to the detailed data of the Bank of Albania's "Real Estate Market and Housing Price Index" survey, the total number of properties sold in the first half of 2023 was 1150, from 933 the previous half-year.

Also, the average number of properties sold for subjects that responded to the Bank of Albania survey increased to 6.7, from 5 that had been in the second half of last year.

172 construction companies and real estate agencies answered the questionnaire of the Bank of Albania for the last six months.

The average time of sale of apartments in the country is reported to be an average of 10.6 months, slightly increasing compared to the value of 10 months in the last six months.

In the case of Tirana, the average time of selling apartments did not show major changes, while coastal cities and others reported higher durations than the previous period.

Agents report an unchanged number of homes on their books. The net balance between those who report an increase in the number of registered dwellings and those who report a decrease in their number, was almost neutral at -0.6%, as in the previous period.

The net balance was identical for commercial properties as well. According to the Bank of Albania, it is worth emphasizing the fact that 83% of the responses were neutral, while those of the form "more/less" made up a small part of them.

The number of unsold properties, both for apartments and commercial buildings, has decreased. The net balance for the number of unsold properties has continued to register a positive value and this phenomenon has started to be observed since the beginning of 2016. This trend shows that the number of unsold properties has marked a continuous decrease in each of the six months of this period.

Over 60% of agents have sold at the same price or up to 5% less than the asking price, which can be an indicator of high demand from buyers. The rest have reported selling at a price between 5% and 20% lower than the original asking price.

According to the agents, about 40% of the residential and commercial properties sold by them were purchased with bank loans. Of these, in 85% of cases, the loan covered up to 60% of the value.

Survey data from the Bank of Albania show that the real estate market remains dynamic, despite the cycle of interest rate increases that began last year.

According to the Fischer index of the Bank of Albania, the average price of houses sold during the period increased by 11.6% compared to the previous six months and remains almost the same compared to a year ago.

A similar trend has been observed for the capital as well. The price index for sales in Tirana registered an increase of 13.3% compared to the previous period, remaining at the level of a year ago.

Also, agents report an increase in rental demand, both for residential and commercial properties, and rental prices have increased. Rental property activity is concentrated in the capital region and especially in the downtown area.

(Source: Monitor)