Housing prices fell by 2.8% in Q3, housing lending portfolio increased by 4.6% annually

Housing prices in Tirana fell again for the third quarter of the year. According to the Housing Price Index, calculated by the Bank of Albania, prices fell for the third consecutive quarter, which indicates a dim performance of the real estate market.

However, in the third quarter, the decline was more restrained, at 2.8%, compared to a decline of 5.9% in the second quarter and a decline of 11.5% in the first quarter.

The fall in prices this year is somewhat unexpected, under the conditions when the property market seems in a positive cycle.

The improvement of the real economy, of the labor market and the growth of bank lending, in theory, would support a higher demand for housing purchase.

Economic growth this year has exceeded the 4% threshold, while unemployment has fallen to 13.9%.

According to the Bank of Albania, a further improvement of the mortgage loan portfolio was noted in the third quarter, with an annual increase of 4.6%, continuously supported by attractive offers for this product.

However, at least referring to the Bank of Albania measurements, on average, prices this year are declining.

Under these conditions, however, the market remains at a stage when buying is still viable.

Prices are declining, while banking financing interest rates are at the lowest historical levels.

Consequently, buying an apartment can be a good investment for the future.

SCAN

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