The Central Bank of Austria has made an in-depth review of the real estate market in Southeast Europe and the Western Balkans.
According to the monetary institution, the Albanian economy is more dependent on the construction sector. In 2022, the added value of construction in GDP was 12%, twice higher than the average in the countries of Southeast Europe.
Kosovo comes after us with almost 11%.
Also, Albania leads the ranking for investment in housing (measured as gross capital formation expenses), at 12% of GDP, which shows that housing is seen as a form of investment with quick returns against the lack of development of housing markets. capital.
But how is the real estate market in Albania financed? The Austrian institution notes that the loan received for the purchase of housing is almost four times lower than the countries of Southeast Europe, but the phenomenon is also distributed in other countries of the Western Balkans. The Austrian Bank notes that remittances from the diaspora are an important source of financing.
As for prices, Albania has the strongest growth since 2019 with 90% according to the Fischer index of the Bank of Albania. In Serbia, the increase was by 58%, while in North Macedonia by about 40%.
According to a survey conducted by BQA, the majority of Albanian households expect property prices to increase further. Expectations for housing prices, the survey points out, are related to economic activity as well as inflationary expectations. The Austrian Bank suggests that monetary policy decision makers should focus their work on the house price indicator, due to its important weight in the economy.
Another observed phenomenon is that construction in Albania employs about 7% of the entire labor force, showing in this respect that it does not play a significant role in the labor market, therefore contributing less to the real economy./TCH