Home prices rise in Albania

The increase in real estate prices in the capital has continued in the first quarter of this year.

In the first quarter 2022, average prices are estimated at 1,143 Euro/m2, with a 3.2% increase compared to the end of last year. In the area within the ring, prices are reaching 1,300 Euro/m2 on average. In the Block area, prices have exceeded 1,600 euros/m2. Even outside the ring area, an apartment averages about 1,000 euros/m2.

The data was released by “Keydata Albany”, is the first private index in Albania, which comes as a product offered by society Key sh.p.k with the support of the BAS programme (Business Advisory Services) provided by the European Bank for Reconstruction and Development (BERZH).

Description statistics on average real prices and apartment sales media in Tirana are made according to the grouping that Kaydata has made 11 administrative areas of the city of Tirana in 3 large areas: within the small Ring, Block and outside the small ring, following the same presentation line as in previous publications.

The above is presented the average actual price of sale of apartments in Tirana to Euro/m2 for the 2020-2022 quarter period, expressed in real value (deflected at inflation rate) as well as media prices. From the first quarter of 2020 to the first quarter of 2022, the level of average real prices in Tirana has moved within the 1,030 Euro/m2 euro/m2 interval, while media prices within the 984 interval. Euro/m2 at 1,059 Euro/m2.

In the first quarter 2022, average prices and media are estimated at 1,143 Euro/m2 and 1,059 Euro/m2, respectively. Compared to the last quarter of 2021, in this quarter, the average real price of selling apartments in Tirana has risen by 3.25%, while media prices have increased by 3.62%.

Average prices, unlike the price index, are calculated in proportion to the number of apartments for sale over a certain period. Thus, an increase or decline in average prices should not necessarily be interpreted by a phenomenon that may have occurred in the real estate market. It may be interpreted by the fact that at a certain moment, the offer for apartments has increased or decreased.

In Graph 2, the average real price is presented and the sale media of apartments in Tirana (Euro/m2) in the area within the small ring for the 2020-22 quarter period. As the graph may indicate, the average actual sale rate in this area has come up at the 1,128 euro/m2 interval. Prices of media fluctuate at 1,074 intervals 1,195 Euro/m2.

The rising price rate rate in the area within the little ring is observed in the first quarter of 2022. In this quarter, the average price is estimated at 1, 269 Euro/m2; the media price is estimated at 1,195 Euro/m2. Compared to the last quarter of 2021, in this quarter, average prices have risen by 3.27% and media prices by 2.75%.

The curve of average real price evolution and prices media (Euro/m2) of apartments in the Block area has been presented on Graph 3. In this area, average retail prices have suffered a slight fluctuation, compared to the area within the ring, hanging at the 1,462 interval. Euro/m2-1,26 Euro/m2, while media prices within the 1,387 Euro/m2 -1,554 Euro/m2 interval.

A decline in average real prices is noted in the second quarter 2020, 13.7%, followed by a sharp increase of 20.7% compared to a quarter earlier, a 3.2 % from the fourth quarter of 2020 in the first quarter of 2021 followed by an increase of 6.2% and again a 2.9% increase from the second quarter in the third quarter 2021, with a decline from the third quarter to the fourth quarter to 1.4%.

In this first quarter 2022, an apartment in the bloc's area is sold at 1,574 Euro/m2, the media price is estimated at 1,484 Euro/m2. Average prices in this quarter compared to the fourth quarter of 2021 have dropped by 1.8%, while media prices have dropped 1.24%.

Graphic 4 represents the evolution of the average real price and the Euro/m2 sales media of apartments in the area outside the little ring. The average real prices in this area range from a 959 Euro/m2 interval to 1,056 Euro/m2 in the first quarter of 2021. Prices vary to an interval of 930 Euro/m2 BAR 993 Euro/m2.

The first quarter of 2022 is marked by an increase in average prices of selling apartments in the area. Average real prices are estimated at 1,056 Euro/m2, while media prices are rated at 993 Euro/m2, undergoing an increase of 4.55 % and 2.4% compared to the fourth quarter of 2021.

Report

This report comes in a continuation of index and statistics publications for the 2005-2019 annual period and in the continuation of fourth quarter 2021 publication, interpretations for the first quarter of 2022 will be presented below.

The same graphic presentation of the time evolution curves of the actual index and statistics of apartment sales prices in Tirana for the three-month period of 2020 through the first quarter of 2022 has been preserved in this publication.

As a comparison basis for all periods involved in the assessment, the same period of time has been preserved, 2005, as a period that meets the criteria and conditions of a stable moment for the real estate market.

As in previously released publications, so in this publication, index and statistics for the fourth quarter of 2021 will be reflected at a three-month frequency. Since in the first publication, the average index and real prices of apartment sales media in Tirana are interpreted according to the phenomenonic analysis (growth, stagnation and decline); in this report and in subsequent reports, not only will the index be provided, the description statistics of prices and property characteristics in sales in the last three-month period, but also comparisons with the preceding quarter. A comparison of the fourth quarter of 2021 is provided in this publication.

It is noteworthy that, Keydata Albania has already built websites www.keydata.al, which will provide information about the index and real estate market statistics easily accessible to any individual or business interested in providing access to online products. /Monitor/