After years of stagnation in the capital’s apartment market, it turns out that it has recovered significantly recently as demand and the impact of doubling the construction tax on infrastructure, coupled with improved urbanization.
The construction boom in the capital has been accompanied by an increase in the number of businesses operating as real estate agencies. Their number in 2018 was 847, an increase of 15 percent compared to the previous year according to data from the Albanian Institute of Statistics (INSTAT).
Over the past two years the construction permits have increased markedly in the capital. During 2018 were granted permits with a total area of 940 thousand square meters, from 521 thousand the previous year, an increase of 80 percent. Only in the fourth quarter were granted permission for a construction area of 456 thousand square meters, or 70 percent of the total land area in the country for construction permits for this period.
What influences the real estate market ?
The real estate market is a highly dynamic market, directly or indirectly influenced by a variety of social, economic, cultural situations of a country. Definitely, in all these situations, natural disasters are an important factor affecting the equilibrium of the real estate sector. The successive earthquakes that have hit Albania since September 2019 have had a significant impact on the demand and supply in the real estate market. Tirana has already become the most
requested place for housing. This is evidenced by the high number of requests that are addressed every day at real estate agencies. The high pace of the fourth quarter 2018 continued in January-March this year. Tirana as an economic and university center draws young people in the capital year after year, who mainly supply demand on the rental market. The growing demand for rent or purchase of apartments has already directly affected the state and the construction sector, increasing the quality of construction.
According to a report published by the Bank of Albania, sales in the Tirana area, including downtown, suburbs and out-of-town areas, increased by 2.6% and 17.2% compared to the previous six months. Being such a dynamic market, it has brought many new agencies into the real estate sector.
But what is the impact of the presence of these new agencies on the real estate market? Some of the real estate in Albania are concerned that the high number of real-estate agencies is having a negative impact. According to them, most do not have the experience in providing real estate services and evaluating the properties listed in the agency. And many new agencies to enrich the database set unrealistic prices to attract clients. This has brought a crash on the market, as owners receiving services from these agencies do not have accurate information about the market. Incorrect service delivery is ruining the image of individuals for agencies.
In its early history, the real estate agency’s mission is to modernize and progress the experience of buying and selling real estate by cultivating a spirit of collaboration, innovation, and integrity.
Let’s stick to this!