Apartment prices have started to fall in the countries of the European Union. The downward trend of prices started in the last 3 months of last year. 

According to Eurostat data for the fourth quarter of 2022, the average price of apartments decreased by 1.7% in the eurozone and 1.5% in the EU, compared to the previous quarter. 

Eurostat points out that this is the biggest quarterly fall for apartment prices in the euro area since the fourth quarter of 2008 (-1.7%) and since the first quarter of 2009 (-1.9 %) for the EU. 

But in Tirana for 2022, apartment prices followed their upward trend. For the first 6 months of last year in Tirana, the price of real estate was 28.4% more expensive than the previous 6 months. 

Compared to 2021, property prices for the period January-June 2022 were 39% more expensive according to the financial stability report of the Bank of Albania. 

The trend of increasing prices has continued this year in Tirana. In suburban areas such as Fresku, apartment prices have increased by 14%. From 700 euros per square meter, which was the maximum price in this area, it has reached 800 euros, according to data from real estate agencies. 

For areas such as the Commune of Paris, the prices of apartments in new constructions continue to be 2,200 euros per square meter, from 1,700 euros per square meter that reached the maximum price in 2021-2022. While in the area of the former Block, the highest price is 3,500 euros per square meter for new constructions. 

Real estate agencies claim that the increase in prices in Tirana has been influenced by increasing demand and increasing costs, especially in new residential areas that offer increased services. 

For other market actors, the increase in prices in the capital is influenced by the flow of informal money. Builders warn of an increase in prices if the fiscal amnesty is approved, as many individuals, mainly immigrants, will rush to legalize their available informal income in the purchase of apartments. 

Real estate activity in the country is growing rapidly. according to INSTAT "Real estate" was the sector with the highest growth in 2022, with 11.21%. Not only is this expansion the highest of all other sectors in 2022, but it also set a record of its own, having the best performance of the last two decades. In value, real estate reached a record of 119 billion lek, or over 1 billion euros. 

Even construction has reached a record level in 2022, with a value of 207 billion ALL, or 1.7 billion euros. 

(Source: Monitor)