Tirana’s real estate market flourishes as banks increased lending by 21m euro in 2017

The banking system has financed purchases at about EUR 520 million in loans in the real estate market in Tirana. According to data from the Bank of Albania, at the end of 2017, the loan portfolio for housing purchase in Tirana reached ALL 70.2 billion. Over a year, the portfolio expanded by about 2.8 billion or 21 million euros. This figure seems to explain, in part, the significant revival of the real estate market in the capital. Unlocking construction permits has led to the launch of many new constructions, while real estate agents state that there is a rising demand and prices in most areas. Facilitating the conditions of mortgage loans, low interest rates as well as the subsidy scheme of interests by the Municipality of Tirana have given an impetus to the market. However, the current bank lending portfolio is far from being the main supporter of the real estate market in Tirana, a market particularly inflated by the investment of money earned through illegal activities and remittances. Demographic statistics show that housing demand in Tirana remains on the rise. According to Instat, only for the last year the population of Tirana increased by about 22 thousand inhabitants. This growth in the population fueled demand in the real estate market, but also in the banking market. For the first nine months of last year in Tirana were granted 167 permits for new buildings.

Source: Scan TV