Albanian households are moving away from the habit of borrowing from relatives. Instead, they are turning to banks and other formal channels, mainly seeking loans for property purchases.

About 95% of Albanian families own at least one piece of real estate, mostly residential homes, while 5% do not own any property. Among borrowing households, 96% possess one or two assets, primarily houses and land.

According to this year’s report by the Central Bank of Albania, household incomes have increased in the first half of the year, as have expenditures. However, the demand for loans has continued to decline, and the share of borrowing households within the total population has fallen to its lowest level in recent years.

The findings, published by the Bank of Albania, show that families are no longer relying on relatives for borrowing. The structure of household borrowing is shifting increasingly toward formal financial channels, with around 70% of loans now coming from banks, and the remaining 30% from informal sources, such as private individuals or in-kind loans.

The survey also reveals that 87% of borrowing households report that their loan installments have remained unchanged, while repayment capacity appears to be improving.

Nevertheless, despite the growth in income and repayment ability, the demand for new loans is showing a downward trend. Only 36% of families consider the possibility of taking or re-taking a loan within the next six months.