The Bank of Albania’s latest Financial Stability Report reveals that the Fischer House Price Index for the country rose by 14.6% on a semi-annual basis and 41.7% compared to the previous year.

The most notable price increase was observed in Tirana, with the index having surged by 5.1% in the second half of 2024 and 32.6% compared to the same period last year.

Due to high prices, the time it takes to sell a property has increased by at least 12 months compared to previous years. The report also highlights a rise in construction costs during the first half of the year, although at a much slower pace than property prices.

Rental prices have also increased, with agents reporting higher demand compared to the previous six months. According to the real estate agencies, overall demand for rental properties is stronger than in the previous half-year.

Bank loans remain significant driver of property sales. Agents report that, similar to previous periods, 58% of residential and commercial properties sold were financed through bank loans. In 62% of these cases, the loan covered up to 60% of the property’s value.

Foreign buyers accounted for fewer property purchases in the first half of 2025. About 15% of properties sold were bought by non-residents, down from 18% in the previous six months.

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According to the latest Bank of Albania survey for the second half of 2024, a significant portion of real estate transactions in Albania are financed through bank loans.

During the reviewed period, a considerable percentage of properties are purchased with credit, with some reports indicating around 50%, with loans covering around 60% of the property’s value.

The central bank’s survey finds that real estate agencies have reported a slight increase in sales of properties during the second half of the past year.

According to the survey, non-resident buyers are showing growing interest in purchasing residential properties.

The survey finds that the average sale time has decreased, especially in the Tirana region, while housing prices are increasing in almost all areas.

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According to the Fisher Price Index, central bank estimates that the average house prices in first half of 2022 rose 28.4% compared to the previous half of the year and 39% year-on-year.

This is the highest 6-month increase of this price index since 2013, when the Bank of Albania started its calculation. Compared to the base period, the housing price index has increased by approximately 110%.

Central bank said that price rising in the first half of this year was mainly by the increase in the volume of real estate sales in the area of ​​Tirana. The price index for sales in the capital registered an increase of 28.5% compared to the previous period and about 40% compared to a year ago.

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The Bank of Albania announces that the house price index in our country increased by 6.2% compared to the previous six months and by 11.3% compared to the corresponding period of the previous year.

In Tirana, prices increased by 2.3% on a semi-annual basis and 8.9% on an annual basis. The BoA survey confirms the perception that immovable property prices continue to go up, despite the strong shock to the economy triggered by the pandemic.

On the demand side, the survey showed that the demand from households for the purchase of housing has grown dynamically, driven by soft loans for purchase of real estate extended by second-level banks.
The stock of loans for real estate investments by households reached ALL 127.4 billion at the end of 2020 and was about 9% higher compared to a year ago.
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