[Article] Housing Prices Fell by 3.1% in Q1

Housing prices in the Albanian capital Tirana decreased once again in the first quarter of this year. The Housing Price Index, calculated on a quarterly basis by the Bank of Albania, also considering the effect of inflation, fell in real terms by 3.1%. According to the central bank, the housing price index in Tirana last year fell on average by 5.4%. The central bank explains that the annual changes in indexes in the housing market during the last quarter have also reflected, to some extent, the effects of the change in the Euro-Lek exchange rate. As housing prices are quoted mainly in Euros, the Bank of Albania calculates the index in Albanian currency at the average rate of the respective month. However, beyond the effect of the exchange rate, the bank's data show once again that optimism about price rises in the property market in the capital is still not fully supported by figures. The rise in prices is more vulnerable to new construction started in recent years, partly due to the doubling of the infrastructure impact tax as well as the very high rates that land owners require. Another factor that has positively influenced was the very low interest rate and the favorable offer of lending from the banking system.

 Source: Scan TV