An average Albanian couple needs 18.6 years to buy an apartment

Albania is often regarded as one of Europe’s poorest countries in terms of the household property.

This is all the more nuanced if we look at it in terms of purchasing power, not in absolute terms.

The real estate market is one of the best prospects in this regard, as it shows how much purchasing abilities Albanian really have, thus ensuring not only their livelihood through an apartment, but also providing an asset with plenty of value.

Scan has made calculations based on official figures and international reports to find out how many years an Albanian family needs to buy a home.

Initially, every calculation is done in average terms, that is, the average salary, the average savings and the average price of housing in Albania.

Also, all accounts are made for a new family, that is, a couple involving two persons that have sustainable income and save on the payroll.

The net average wage in Albania is quoted at 347 euros.

The savings rate, meanwhile, according to the World Bank’s latest report, extends to 27% of revenue. This means that an average Albanian saves 94 euros a month, and 1128 euros a year.

For a couple, the savings go to 2,256 euros a year.

The latest available data regarding the sale and purchase price of housing, from the National Housing Authority, speak for an average price of ALL 56 thousand per square meter in the 12 districts of the country, with Tirana where the price is fixed at ALL 89 thousand per square meter and Berat to ALL 41 thousand per square meter.

This translates to 420 euros per square meter, ie 42 thousand euros for a 100 square meter flat.

So, with an average saving of € 2,256 a year, an Albanian couple needs 18.6 years to buy an apartment if they save 27% of their salary income.

If the savings were only 10% of the salary, then the time needed to purchase an apartment would have been 50.4 years.

In the income of an average of Albanians, alternative sources of income, such as borrowing, remittances, inherited wealth, etc. are not taken into account.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.