Residential Real Estate Leases - Albania

in Albania, a country in the Balkan Peninsula, is expected to witness significant growth in the Residential Real Estate Leases market market.
By 2024, the revenue of this market segment is projected to reach US$271.70m.
House Leases dominate the market, with a projected market volume of US$198.40m in 2024.
Looking ahead, the market is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 2.46%.
This growth rate is expected to result in a market volume of US$306.80m by 2029.
The demand for residential real estate leases in Albania is currently on the rise due to the growing popularity of urban living among young professionals.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Albania is experiencing significant growth and development. Customer preferences in the market are shifting towards renting rather than buying properties. This is due to several factors, including the flexibility and affordability that renting offers. Many individuals and families are choosing to rent homes instead of purchasing them, as it allows them to have more freedom in terms of location and the ability to move easily if needed. Additionally, renting is often seen as a more cost-effective option, as it eliminates the need for a large upfront investment and ongoing maintenance costs. Trends in the market show an increase in demand for rental properties, particularly in urban areas. Albania's urban population is growing rapidly, leading to a higher demand for housing. This has resulted in a rise in rental prices, as the supply of rental properties struggles to keep up with the demand. Landlords are taking advantage of this trend by increasing rental rates, which is driving up the overall cost of renting in the country. Local special circumstances in Albania also contribute to the development of the Residential Real Estate Leases market. The country has a high rate of homeownership compared to other European countries, which means that there is a limited supply of rental properties available. This scarcity of rental properties further drives up demand and prices in the market. Underlying macroeconomic factors also play a role in the development of the Residential Real Estate Leases market in Albania. The country's economy has been growing steadily in recent years, leading to an increase in disposable income for many individuals. This has allowed more people to enter the rental market and afford higher rental prices. Additionally, the government has implemented policies to attract foreign investment in the real estate sector, which has further fueled the growth of the market. In conclusion, the Residential Real Estate Leases market in Albania is experiencing significant growth and development. Customer preferences are shifting towards renting, and there is a high demand for rental properties in urban areas. Local special circumstances, such as a limited supply of rental properties, contribute to the development of the market. Underlying macroeconomic factors, including economic growth and government policies, also play a role in the market's development.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 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 Leases - Albania

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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