Housing price index fell by 6.3% in the first semester of 2017: BoA
The housing price index in Tirana declined by 5.9% in the first quarter of this year.
According to data from the Bank of Albania, the real estate market suffered an unexpected setback after a positive performance in 2016.
It seems that demand has seen a shift in the market of rent, which, relying on data from the Bank of Albania, increased by 6.3% compared with the same period a year ago.
The decline in housing prices in the first quarter of this year could be interpreted as a temporary development, and the relationship between prices and rents is narrow, which proves that, however, the market continues to experience an increased demand for housing.
According to the housing price index of the Bank of Albania, prices had an upward trend in Tirana in 2016, favored by the recovery of demand.
The increase in demand was influenced by the favorable interest rates on bank loans, but also by a drastic reduction of the interest rates on deposits, which may have encouraged investment in properties as the most profitable option.
Improvements in the real estate market have been accompanied by a growing trend of new constructions.
According to INSTAT, for the second half of last year, the number of approved permits was 292, five times greater compared with the second half of 2015.
SCAN
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