Residential Real Estate - Albania

The Residential Real Estate market market in Albania is estimated to reach a value of US$76.87bn in 2024.
It is projected to experience an annual growth rate (CAGR 2024-2029) of 6.30%, leading to a market volume of US$104.40bn by 2029.
In comparison to other countries, China is expected to generate the highest Real Estate value, reaching US$112.9tn in 2024.
Residential real estate in Albania is experiencing a surge in demand due to increased investment from foreign buyers.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is 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 for real estate renters as well.

Residential real estate transactions
Residential real estate leases

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

The Residential Real Estate market in Albania is experiencing significant growth and development. Customer preferences have shifted towards owning property rather than renting, leading to an increase in demand for residential real estate. Additionally, several trends in the market are driving this growth, including a rise in tourism and foreign investment. Local special circumstances, such as the government's focus on urban development and infrastructure projects, are also contributing to the expansion of the residential real estate market. Furthermore, underlying macroeconomic factors, such as a stable economy and low interest rates, are creating favorable conditions for investment in the sector. Customer preferences in Albania have shifted towards owning property rather than renting. This is driven by several factors, including a cultural preference for homeownership and the desire for long-term stability. Additionally, the availability of mortgage financing and favorable interest rates have made it more accessible for individuals to purchase property. As a result, there has been a surge in demand for residential real estate. One of the key trends in the market is the rise in tourism. Albania has become an increasingly popular tourist destination, attracting visitors from around the world. This has created a demand for vacation homes and rental properties, driving up prices in the residential real estate market. Foreign investors are also taking advantage of the growing tourism industry by purchasing properties for investment purposes. Another trend in the market is the government's focus on urban development and infrastructure projects. The Albanian government has been investing in the development of cities and improving infrastructure, such as roads and public transportation. This has led to the revitalization of urban areas and an increase in property values. Additionally, the government has implemented policies to attract foreign investment, further stimulating the residential real estate market. Local special circumstances, such as the country's natural beauty and coastal areas, have also contributed to the growth of the residential real estate market. Albania is known for its stunning landscapes, including pristine beaches and mountainous regions. This has attracted both domestic and international buyers who are seeking properties with scenic views and proximity to nature. Underlying macroeconomic factors have also played a role in the development of the residential real estate market in Albania. The country has experienced a stable economy with consistent GDP growth, which has instilled confidence in investors. Additionally, low interest rates have made it more affordable for individuals to finance their property purchases through mortgages. In conclusion, the Residential Real Estate market in Albania is experiencing significant growth and development due to shifting customer preferences, key market trends, local special circumstances, and underlying macroeconomic factors. The desire for homeownership, rise in tourism, government focus on urban development, natural beauty, and stable economy are all contributing to the expansion of the residential real estate market in Albania.

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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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Residential Real Estate - Albania

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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