Housing prices in the European Union have increased by only 1.7 % compared to last year, despite the rising cost of raw materials and the energy crisis.
In Albania, from year-to-year prices in the housing sector increased by 39 % in the whole country and 40 % only in Tirana.
Rent prices in the EU rose by 18 %. But in Tirana, the increase based on reports of real estate agencies, the increase was 30 to 50 % depending on location. Compared to 2019, rental prices have almost doubled.
EU member states reporting the highest growth are the Baltics, directly dependent on raw materials from Russia and Ukraine, while Italy, Greece and Cyprus reported declines in both house prices and rents.
The reason is related to the drop in demand. In many countries in the EU, the price crisis has reduced the demand for housing purchases. In Albania, builders have reported an increasing demand for this year as well.
This was also witnessed in INSTAT’s September survey of economic sentiment indicators. According to the survey, the indicator of confidence among builders fell by over 5 %. However, the builders were optimistic about contract orders for the sale of apartments.
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