Albanian Daily News
A significant proportion of Albanians say they do not have the opportunity to buy or build a house, which contrasts with the boom in the real estate market in recent times.
The Bank of Albania in the index that it compiles for the indicator of business and consumer confidence, has one of the issues related to the purchase of homes.
Respondents are asked a quarterly question: “Do you plan to buy or build a house in the next 12 months (to live alone, a family member, as a vacation home, for rent, etc.)? . ”? And the options are: Yes, of course; Possible; There are many possibilities that not; No; I do not know.
The balance of responses to this question is -88, for the first quarter of 2021, close to the maximum negative level (-100), which indicates a strong inability to buy a home. According to the methodology of the Bank of Albania, the balance indicator takes values between -100 and +100. A flag greater than 0 indicates more positive than negative responses in a given quarter. Of the 15 questions asked by the Bank of Albania to measure consumer confidence (including assessment of financial situation, unemployment, expectations of major purchases, trends in savings, unemployment, etc. ), the answer has the highest negative balance.
Inability to buy a home was highest in the first half of last year, especially in the second quarter when the balance hit nearly 90%, due to uncertainty created by the pandemic and the rising unemployment. However, in reality, the real estate market of this period was booming. Other data from INSTAT showed that although in times of pandemic, economic slowdown and declining consumption, the country’s real estate sector is the only one not feeling the crisis at all. For the first 9 months of 2020, real estate transactions amounted to ALL 76 billion (approximately EUR 612 million), again setting a record for the period in question, since 2009.
Great impossibility even to buy cars. The second answer with the highest negative balance is buying a car. The question asked to consumers is: “How many opportunities do you have to buy a car in the next 12 months?” The alternatives to the answers are: Very likely; Possible; Impossible; Completely impossible; I do not know.
The balance of responses in the first quarter of 2021 was -61.2. as in the case of houses, the highest impossibility occurred during the pandemic period, in the first and second quarters of 2020. According to Eurostat, Albania is one of the countries with the lowest number of vehicles per relative to the population, with North Macedonia.