According to recent observations, apartment prices in many areas of the capital have not changed since last fall. Is this trend expected to change?
Monitor.al reports that builders warn that there will be no drop in apartment prices in Albania. For example, the new constructions at the beginning of the "Commune of Paris" area this year are also being sold from the start of the investment at prices of 2,100 to 2,200 euros per square meter, writes Monitor.al
According to the Fischer House Price Index, calculated by the Bank of Albania, the average price of houses sold during the first 6 months of 2022 increased by 39% compared to a year ago.
In addition to the increase in the cost of construction and wages of the workforce, an important factor in the increase in apartment prices has also been the flow of informal money. We also add here the expectations of the builders for the fiscal amnesty. The draft fiscal amnesty allows voluntary declaration of an asset with a monetary value of up to 2 million euros, and it is expected that much of the money that will be formalized will be invested in the purchase of apartments.
The construction sector was one of the main typologies for money laundering by Organized Crime Organizations for 2020 according to the report of the Directorate for the Prevention of Money Laundering.
The figures show that an Albanian family needs more than 17 years of income to buy an apartment. The index takes as a basis the net disposable income of a family, the average price of a square meter of the center and the suburbs, as well as the cost of a loan. The lower this ratio, the easier it is for families to buy a house.
