Real Estate - Albania | Statista Market Forecast

The Real Estate market market in Albania is expected to reach a value of US$88.47bn in 2024.
The residential segment dominates this market, with a projected market volume of US$76.87bn in the same year.
It is anticipated that this market will experience an annual growth rate of 6.15% from 2024 to 2029, resulting in a market volume of US$119.20bn by the end of 2029.
When compared globally, United States is projected to generate the highest value in the Real Estate market sector, with an estimated US$132.0tn in 2024.
The real estate market in Albania is experiencing a surge in demand for residential properties, driven by an increasing number of foreign investors attracted to the country's affordable prices and potential for high returns.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

Albania, a small country located in the Balkans, has been experiencing significant developments in its real estate market. Customer preferences in the Albanian real estate market have been shifting towards urban areas, particularly in the capital city of Tirana. This can be attributed to the increasing number of job opportunities and the availability of modern amenities in urban areas. Additionally, there is a rising demand for residential properties, particularly apartments, as more people are looking to invest in real estate for rental income or to secure their own homes. Trends in the market indicate a growing interest in sustainable and energy-efficient properties. This can be attributed to the global push towards environmental sustainability and the rising awareness of the benefits of energy-efficient buildings. Developers in Albania are incorporating green building practices and technologies to meet the demand for sustainable properties. This trend is expected to continue as more buyers prioritize energy efficiency and environmental responsibility. Another notable trend is the increasing popularity of luxury properties in Albania. The country's natural beauty, including its stunning coastline along the Adriatic and Ionian Seas, has attracted high-net-worth individuals who are looking for exclusive and luxurious properties. The demand for luxury villas and beachfront properties has been on the rise, leading to the development of high-end real estate projects in desirable locations. Local special circumstances, such as the country's relatively low property prices compared to other European countries, have contributed to the growth of the real estate market in Albania. This affordability factor has attracted both domestic and international buyers, who see the potential for high returns on their investments. Additionally, the Albanian government has implemented policies to attract foreign investment, including offering tax incentives and simplifying the process of property ownership for non-residents. These factors have further stimulated the real estate market in the country. Underlying macroeconomic factors, such as Albania's stable economic growth and increasing tourism industry, have also played a significant role in the development of the real estate market. The country has experienced steady economic growth in recent years, leading to improved living standards and increased purchasing power. This has translated into higher demand for real estate, both for residential and commercial purposes. Furthermore, the growing tourism industry has created opportunities for property owners to capitalize on the influx of tourists by offering short-term rentals or investing in hospitality projects. Overall, the real estate market in Albania is experiencing positive developments driven by customer preferences for urban areas, sustainable properties, and luxury real estate. The local special circumstances, including affordability and government policies, have further fueled the market's growth. These trends are supported by underlying macroeconomic factors, such as stable economic growth and a thriving tourism industry. As Albania continues to attract investors and buyers, the real estate market is expected to continue its upward trajectory.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Albania

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